On November 30, 2017, Calla Resources Ltd. borrowed $120,000 from a bank by signing a four-year instalment note bearing interest at 10%. The terms of the note require equal payments each year on November 30, starting November 30, 2018. Use TABLE 14A.2 Required: 1. Calculate the size of each instalment payment. (Do not round intermediate calculations. Round the final answer to the nearest whole dollar.)

Payment

2. Complete an instalment note amortization schedule for this note. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.)

	Payments
Period Ending	Beginning Balance	Period Interest Expense	Debit Notes Payable	Credit Cash	Ending Balance
Nov. 30/18
Nov. 30/19
Nov. 30/20
Nov. 30/21
Totals

3. Present the journal entries that Calla would make to record accrued interest as of December 31, 2017 (the end of the annual reporting period), and the first payment on the note. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)

1.Record the accrued interest on the installment note payable.

2.Record the first payment made on installment note.

4. Now assume that the note does not require equal payments but does require four payments that include accrued interest and an equal amount of principal in each payment. Complete an instalment note amortization schedule for this note. Present the journal entries that Calla would make to record accrued interest as of December 31, 2017 (the end of the annual reporting period), and the first payment on the note. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.)

	Payments
Period Ending	Beginning Balance	Period Interest Expense	Debit Notes Payable	Credit Cash	Ending Balance
Nov. 30/18
Nov. 30/19
Nov. 30/20
Nov. 30/21
Totals

1.Record the accrued interest on the installment note payable.

2.Record the first payment made on installment note.