View Policies Show Attempt History Current Attempt in Progress Culver Incorporated provides solar energy services to Toronto. Culver needed to buy additional solar energy panels to meet the demand for its energy product. The Government of Ontario offered an interest-free forgivable loan to Culver in the amount of $450,000. The loan will be forgiven if Culver is able to produce a stated number of kilowatts of energy per year for the next five years. If these conditions are not met, the amount is due to the government in full in five years. Culver believes it will be able to meet the conditions. Culver recently obtained a similar loan from the bank with an annual interest rate of 9%. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1 (b) Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, calculate the value of the loan and prepare an amortization table for the loan using the effective interest method. Present the first three years of the loan. (Hint: Refer to Chapter 3 for tips on calculating. For the amortization table, use the amount arrived at using factor tables.) (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places, e.g. 5,275.) Schedule of Note Discount Amortization Debit, Interest Expense Date Credit, Notes Payable 12/31/20 12/31/21 $ 26322 12/31/22 12/31/23 Carrying Amount of Note 292469 318791 28691 347482 31273 378755 Prepare the entry on December 31, 2020, to record the interest-free loan. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places, e.g. 5,275.) Date Account Titles and Explanation Dec. 31, Cash 2020 Interest Expense Mortgage Payable Debit 292469 26322 Credit 318791