You are an accounting intern working for SpringFit Corporation. You have recently been assigned to help one of the accountants who is doing an internal audit of the business. You will be assisting with a review of the payables issued by SpringFit Corporation. Your first task is to review the previous years journal entries, shown below.

1. What is the yearly payment amount required for the Notes Payable (assume it is an installment note)?

2. WHat is the interest rate on the Notes Payable?

Journal Entries, Year 1

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JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1	Jan. 1	Cash		1,008,960.00
2		Premium on Bonds Payable			58,960.00
3		Bonds Payable			950,000.00
4	Jun. 30	Interest Expense		18,427.00
5		Premium on Bonds Payable		2,948.00
6		Cash			21,375.00
7	Jul. 1	Cash		1,921,280.00
8		Discount on Bonds Payable		78,720.00
9		Bonds Payable			2,000,000.00
10	Oct. 1	Cash		1,500,000.00
11		Notes Payable			1,500,000.00
12	Dec. 31	Interest Expense		18,427.00
13		Premium on Bonds Payable		2,948.00
14		Cash			21,375.00
15	31	Interest Expense		22,500.00
16		Interest Payable			22,500.00
17	31	Interest Expense		41,560.00
18		Discount on Bonds Payable			6,560.00
19		Cash			35,000.00
20	31	Income Summary		100,914.00
21		Interest Expense			100,914.00