Aa.15. Josh Company has borrowed $4,000,000 from its neighborhood bank for business expansion. The bank charges 6% interest requiring semi-annual payments of equal size over a three-year period amortizing the loan. The first payment is to be made six months after taking out the loan. Answer the following: A. Show the size of each of the equal payments made to amortize the loan. B. Show the proper journal entry that would be made when the first semi-annual payment on the loan is made. C. Show the journal entry that would be needed to pay the second semi-annual payment. D. Immediately after paying the second payment, the firm decided to pay the remainder of the note off early. What would be the journal entry to record this early retirement of the note?
Aa.15.
Josh Company has borrowed $4,000,000 from its neighborhood bank for business expansion. The bank charges 6% interest requiring semi-annual payments of equal size over a three-year period amortizing the loan. The first payment is to be made six months after taking out the loan.
Answer the following:
A. Show the size of each of the equal payments made to amortize the loan.
B. Show the proper
C. Show the journal entry that would be needed to pay the second semi-annual payment.
D. Immediately after paying the second payment, the firm decided to pay the remainder of the note off early. What would be the journal entry to record this early retirement of the note?
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