Question
Please assist with the following question. Thank you in advance :) On January 1, 2016, a borrower signed a long-term note, face amount, $400,000; time
Please assist with the following question. Thank you in advance :)
On January 1, 2016, a borrower signed a long-term note, face amount, $400,000; time to maturity, two years; stated rate Of interest, 2%. The effective rate of interest of 6% determined the amount of cash received by the borrower. The principal of the note will be paid at maturity; stated interest is due at the end of each year. Required: a) Calculate the amount of cash received by the borrower. Show the calculator input values. b) Complete the amortization table below using the effective interest method. Round amounts to the nearest dollar. Period endi Dec 31/16 Dec 31/17 Opening net liabili Period interest ex ense Interest aid Discount amortization Net closing liabili c Record entries associated with the bond b the borrower from issuance throu to maturit . Date Account Titles Debit Credit
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