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Please use excel and show formula Braxton Technologies, Inc., constructed a conveyor for A&G Warehousers that was completed and ready for use on January 1
Please use excel and show formula
Braxton Technologies, Inc., constructed a conveyor for A\&G Warehousers that was completed and ready for use on January 1 , 2021. A\&G paid for the conveyor by issuing a $100,000, four-year note that specified 5% interest to be paid on December 31 of each year, and the note is to be repaid at the end of four years. The conveyor was custom-built for A&G, so its cash price was unknown. By comparison with similar transactions it was determined that a reasonable interest rate was 10%. Required: 1. Prepare the journal entry for A\&G's purchase of the conveyor on January 1, 2021. 2. Prepare an amortization schedule for the four-year term of the note. 3. Prepare the journal entry for A\&G's third interest payment on December 31, 2023. 4. If A\&G's note had been an installment note to be paid in four equal payments at the end of each year beginning December 31 , 2021, what would be the amount of each installment? 5. Prepare an amortization schedule for the four-year term of the installment note. 6. Prepare the journal entry for A\&G's third installment payment on December 31, 2023Step by Step Solution
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