Saturn Ltd. received a $400,000, three-year, 9% promissory note from Pluto Ltd. on February 1, 20X1. Interest on the note is paid semi-annually on July 31 and January 31. The market interest rate for similar debts at a comparable level of risk was 6%. Saturn Ltd. is listed on the TSX and has a December 31 year end Required: (i) Prepare an effective-interest amortization schedule for the promissory note received by Saturn Ltd. on February 1,20X1. Round all dollar amounts to the nearest dollar (ii) Determine the total amount of interest income from the above note that Saturn Ltd. should report for the year ended December 31, 20X1. Show all supporting calculations. Round all dollar amounts to the nearest dollar (iii) Determine the total amount of interest income from the above note that Saturn Ltd. should report for the year ended December 31, 20X2. Show all supporting calculations. Round all dollar amounts to the nearest dollar (iv) Determine the total amount of interest income from the above note that Saturn Ltd. should report for the year ended December 31, 20X3. Show all supporting calculations. Round all dollar amounts to the nearest dollar (v) Determine the total amount of interest income from the above note that Saturn Ltd. should report for the year ended December 31, 20X4. Show all supporting calculations. Round all dollar amounts to the nearest dollar Saturn Ltd. received a $400,000, three-year, 9% promissory note from Pluto Ltd. on February 1, 20X1. Interest on the note is paid semi-annually on July 31 and January 31. The market interest rate for similar debts at a comparable level of risk was 6%. Saturn Ltd. is listed on the TSX and has a December 31 year end Required: (i) Prepare an effective-interest amortization schedule for the promissory note received by Saturn Ltd. on February 1,20X1. Round all dollar amounts to the nearest dollar (ii) Determine the total amount of interest income from the above note that Saturn Ltd. should report for the year ended December 31, 20X1. Show all supporting calculations. Round all dollar amounts to the nearest dollar (iii) Determine the total amount of interest income from the above note that Saturn Ltd. should report for the year ended December 31, 20X2. Show all supporting calculations. Round all dollar amounts to the nearest dollar (iv) Determine the total amount of interest income from the above note that Saturn Ltd. should report for the year ended December 31, 20X3. Show all supporting calculations. Round all dollar amounts to the nearest dollar (v) Determine the total amount of interest income from the above note that Saturn Ltd. should report for the year ended December 31, 20X4. Show all supporting calculations. Round all dollar amounts to the nearest dollar
