On July 1, 2023, Pharoah Ltd. received a loan from its bank for $15,000 bearing interest at 6%. The loan is payable in two annual instalments of $8,182 principal and interest on June 30 each year. The company records adjusting journal entries annually at year end on December 31. (a) Prepare an instalment payment schedule for the term of the loan. (Round answers to O decimal places, e.g. 5,255.) Annual Interest Period July 1, 2023 June 30, 2024 June 30, 2025 $ Cash Payment $ Interest Expense $ Reduction of Principal $ Principal Bal
On July 1, 2023, Pharoah Ltd. received a loan from its bank for $15,000 bearing interest at 6%. The loan is payable in two annual instalments of $8,182 principal and interest on June 30 each year. The company records adjusting journal entries annually at year end on December 31. (a) Prepare an instalment payment schedule for the term of the loan. (Round answers to O decimal places, e.g. 5,255.) Annual Interest Period July 1, 2023 June 30, 2024 June 30, 2025 $ Cash Payment $ Interest Expense $ Reduction of Principal $ Principal Bal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On July 1, 2023, Pharoah Ltd. received a loan from its bank for $15,000 bearing interest at 6%. The loan is payable in two annual
instalments of $8,182 principal and interest on June 30 each year. The company records adjusting journal entries annually at year end
on December 31.
(a)
Prepare an instalment payment schedule for the term of the loan. (Round answers to O decimal places, e.g. 5,255.)
Annual
Interest
Period
July 1,
2023
June
30,
2024
June
30,
2025
$
Cash Payment
$
Interest Expense
$
Reduction of Principal
$
Principal Bal
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