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Please explain this and show each step.. On August 1, 2014 Y borrowed $1,000,000 at 3%. Y pays interest every 6 months with interest payments
Please explain this and show each step..
On August 1, 2014 Y borrowed $1,000,000 at 3%. Y pays interest every 6 months with interest payments every February 1 and August 1. Y will repay $400,000 of the principal on August 1, 2015 and the remainder on February 1, 2016. Assume Y only makes AJEs every December 31 AND does NOT make reversing entries. Prepare the entries Y should make on:
a) August 1, 2014
b) December 31, 2014
c) February 1, 2015
d) August 1, 2015
e) December 31, 2015
f) February 1, 2016
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