Survey of Accounting Packet 20 Semester Case - Cowboy Ice Cream, Inc. (CIC) Last class period we discussed a possible expansion by CIC whereby they would purchase a building, land, and new equipment. In order to finance such an expansion CIC would borrow $800,000. CIC is currently considering possible options for this borrowing. Prepare amortization schedules for each of the following, rounding all computations to the nearest whole dollar. Assume 8% interest applies to each option and all borrowings would originate on January 1, 2019. Option #1: Issue a note with the principal and interest due in 18 months. Interest and principal are payable in cash on June 30, 2020. Option #2 Issue a note with the principal due in 5 years with interest payable annually on December 31. Option #3 Issue a note to repay $160,000 of the principal due each year on December 31 for 5 years along with the annual interest due. Option #4 Issue a note to make equal annual payments of $200,365 each year on December 31 for 5 years. Survey of Accounting Packet 20 Option #4 Year Pmt # Balance January 1 $800,000 Total Cash Paid Interest Expense Principal Reduction Balance December 31 # 2019 1 2020 2 2021 3 2022 4 2023 5