Zeta Corp issues loan notes of $75,000 on 1 January 2010. Redemption is to take place on equal terms, five years later. The company decides to put aside an equal amount to be invested at 4.5% which will provide $75,000 on maturity. Tables show that $0.191735 invested annually will produce $1 in five years’ time.

Required: Create:

1. The loan-note redemption reserve ledger.
2. The sinking fund investment ledger.
3. The loan-notes payable ledger.
4. Notes to the financial statements explaining the sinking fund and redemption process.