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PLEASE SHOW ALL WORK AND CALCULATIONS, THANKS! On January 1, 2015, SouthCo sold inventory costing $45,000 to Second Time Around Clothing. In return, SouthCo received

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PLEASE SHOW ALL WORK AND CALCULATIONS, THANKS!

On January 1, 2015, SouthCo sold inventory costing $45,000 to Second Time Around Clothing. In return, SouthCo received a 4-year, 7% note with a face value of $75,000. Blended payments will be made yearly on December 31, and will include principal and interest. The market rate of interest is 9%. SouthCo has a December 31 year-end while Second Time Around Clothing's year-end is September 30. Please make sure your final answer(s) are accurate to the nearest whole number. a) Calculate the annual payments SouthCo will receive each year from Second Time Around Clothing. Use the stated rate of the note in your calculation. Annual payment = $ b) Complete the following payment and amortization schedule for the note. Interest Carrying Cash Income Principal Value Recieved (9%) Reduction Of Note January 1, 2015 December 31, 2015 December 31, 2016 December 31, 2017 December 31, 2018 c) Record the journal entries for SouthCo on January 1, 2015 and December 31, 2015. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). General Journal Account/Explanation Page G2 PR Debit Credit Date + + +

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