Ullapiel J-IILII V VII LUI LULU The following information is provided for LAX, LLC on January 1, 2021: State Bank installment loan Principal: $ 1,000,000 Rate: 5.35% Term: 5 years Payment: $ 233,214 Payment dates: annual, end of year Par: Stated rate: Market rate: Term: Selling price: Discount: Bond issuance $ 2,000,000 5.00% 4.95% 3 years $ 2,002,756 $ 2,756 Interest (beg. bal. x rate) Note reduction Ending note balance $ 1,000,000 1. Prepare the installment loan amortization table: Beginning note Date balance Annual payment 01/01/21 12/31/21 1,000,000 233,214 12/31/22 233,214 12/31/23 233,214 12/31/24 233,214 12/31/25 233,214 2. Record the note and the first annual installment payment: Accounts Debits Credits Date 01/01/21 12/31/21 Premium amortization Total premium balance 2,756 Ending note balance $ 2,002,756 $ 3. Prepare the bond amortization table using the effective interest method: Beginning Coupon Int. (beg. CVX Date carrying value payments mark. %/2) 01/01/21 06/30/21 2,002,756 50,000 12/31/21 50,000 06/30/22 50,000 12/31/22 50,000 06/30/23 50,000 12/31/23 50,000 4. Record the sale of the bonds and the first semi-annual coupon payment: Accounts Debits Credits Date 01/01/21 06/30/21