Problem 1

On January, 2009 Maryland Company borrowed 145,000 EUR cash from Caixa Bank. The terms of the note were 5 years at 8% interest rate. You made yearly payments of 36.316,19 EUR for 5 years. Instructions 1. Prepare an amortization table (20 points) Date beginning balance cash payment interest expense to principal ending balance 2. Prepare the journal entry for Maryland to record the notes issuance. (10 points) 3. Prepare the journal entries to record 1st year and 2nd year payment (one journal entry for each year)