On July $1,2023,$ Cullumber $Ltd.$ received a loan from its bank for $$16,000$ bearing interest at $5\%.$ The loan is payable in two annual instalments of $$8,605$ principal and interest on June $30$ each year. The company records adjusting journal entries annually at year end on December $31.$

$($a$)$

Prepare an instalment payment schedule for the term of the loan. $($Round answers to $0$ decimal places, eg$.5,255.)$

Annual

Interest

Period

Cash Payment

Interest Expense

Reduction of Principal

Principal Balance

July $1,$

$2023$

June

$30,$

$2024$

$

$

$

June

$30,$

$2025$