The company purchased the new machine with a loan for the full amount. Conditions of the loan were 10 years at 7% fixed interest.

Prepare the loans amortization table showing for each year, the yearly installment, interest expense, principal pay-back and outstanding balance.

What would have been the impact from borrowing over half the time (5 years only) or at half the interest rate.

Indicate if each entry is debited or credited

Example: Buildings = Debited

Notes Payable =

Office equipment =

Capital stock =

Cash inflow =

Land =

Increase in Revenue =