Submission file format: Excel document with all the answers, clearly identifying all steps, results, journals and including comments besides each answer.

Business case (100 points)

James has been running a delivery company for the last 10 years. He comes to ask you about several issues affecting his business:

James considered it necessary to renew part of the assets of the company, and in particular purchase a new fleet of trucks so as to increase the capacity of the company.

On 28th of March 2020, he purchased a new truck with an estimated useful life of 8 years for a total price of 165,000 and a residual value of 5,000.

On 25 of September James decides to purchase a building where to set up his office. In order to finance the purchase that will take place on the 1st of October, James will take a 20-year Mortgage for 900,000, with a 5% interest rate. James will have to refund the mortgage through monthly installment payments of 4.000.

James also plans to sell his professional SUV vehicle. He received an offer from an interested company who would purchase it for 29.000. The transaction would take place on December 31, 2020. Said vehicle was purchased on 1 of January 2016 for 85.000.

The accountant of Jamess company considered for depreciation purposes that this vehicle had a useful life of 6 years and a residual value of 5.000. The accountant used the double-declining balance method.

1. Prepare the amortization table of the mortgage for the months of October, November and December 2020. Calculate the interest expense for the whole year 2020 and the total balance of the liability to be registered in the balance sheet of the company at 31 of December 2020. (20 points). Prepare the journal entries to record the installment payments