Tango Ltd is seeking to finance the expansion of its operations to the tune of $220 million through the issue of debt. Its current options include: the issue of an ordinary loan note, issued at a 1.5% discount, repaid at a 4% premium, and with issue costs of $1.081 million, or the issue of a convertible loan note at par, which may be exchanged for 100 million ordinary shares upon maturity. Elther instrument would mature in three years, and would carry a nominal interest rate of 3% and an effective interest rate of 5%. REQUIRED: (a) Assuming the company proceeds with the issue of the ordinary loan note: Show the relevant journal entries for the initial issue of the loan note, alongside any supporting workings Prepare the schedule reflecting the amortisation of the toan note over the three-year period Show the relevant financial statement extracts at the end of the first and second years