\

Question 1 Sandhill Ltd. issued $1.16 million of 5-year, 4% bonds dated May 1, 2017, for $1,213,490 when the market interest rate was 3%. Interest is paid semi-annually on May 1 and November 1. Prepare an amortization schedule for the first three interest payments. (Round answers to o decimal places, e.g. 5,275.) SANDHILL LTD. Bond Premium Amortization Table Effective Interest Method-Semi-annual Interest Payments 4% Bonds Issued at market rate of 3% Interest Payment Interest Expense Premium Amortization Bond Amortized Cost Date May 1, 2017 Nov. 1, 2017 May 1, 2018 Nov. 1, 2018 On January 1, 2017, Sandhill Corp. borrows $32,000 by signing a 3-year, 6% note payable. The note is repayable in three annual blended payments of $11,972 on December 31 of each year. Prepare an instalment payment schedule for the note. (Round answers to 0 decimal places, e.g. 5,276.) Period Cash payment Interest Expense 6% Reduction of Principal Principal Balance Jan. 1, 2017 Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2019 LINK TO TEXT Prepare journal entries to record the note and the first instalment payment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1 Dec. 31 LINK TO TEXT What amounts would be reported as current and non-current in the liabilities section of Sandhill's balance sheet on December 31, 2017? Current liability Non-current liability