Question 24 (6 marks) (11 minutes)

On December 31, 20x1, the Hanlon Corporation took out a 4%, $500,000 bank loan. The loan is repayable over 3 years at equal annual repayments of $180,174 on December 31 of each year. The first payment is due on December 31, 20x2 and the last payment is due on December 31, 20x4.

Required

1. Prepare an amortization schedule for this loan

2. Prepare the journal entry at December 31, 20x3 to record the annual payment.