THMD Software Inc. successfully developed a new computer program. To produce and market the program, the company needed to raise $1million. On December 31, 2020, THMD borrowed $1million from the bank for 15 years at 6%. The terms of the bank loan provide for semi-annual instalment payments of $51,019 on June 30 and December 31.

Instructions:

a) Prepare an instalment payment schedule for the first four instalment payments. Round all dollar amounts to the nearest dollar. (10 marks)

b) Record the receipt of the bank loan on December 31, 2020.

c) Record the first instalment payment on June 30, 2021.