P13.2 Excel Bian Inc, financed the purchase of equipment costing $85,000 on January 1, 2020, using a note payable. The note requires Bian to make annual $23,971 payments of blended interest and principal on January 1 of the following four years, beginning January 1, 2021. The note bears interest at the rate of 5%. Instructions a. Finance Prepare the debt amortization schedule for the note over its term. Using a financial calculator or Excel, prove that the blended payment will cost Bian Inc. 5%. Round amounts to the nearest dollar. b. Prepare the journal entry(ies) that are required for the year ended December 31, 2020, and the first instalment payment on January 1, 2021. c. Prepare the SFP presentation of the note at December 31, 2020 (include both the current and long- term portions) and any interest outstanding. d. Prepare the SFP presentation of the note at December 31, 2021, and any interest outstanding. e. Redo part (c) assuming that the equipment was purchased on July 1, 2020, and the payments are due beginning July 1, 2021. f. If the repayments in the note had been a fixed principal repayment each year, what would have been the amount of the annual principal payment? Prepare the debt amortization schedule for the note over its term. Round amounts to the nearest dollar. g. Compare the interest costs for the term of the note with fixed payments in part (a) and with fixed principal repayment in part (f). Which has the higher interest costs? h. Digging Deeper You are the lender. Would you rather negotiate a note with fixed principal payments or fixed payments? Why