Exercise 9-5 (Static) Compute total interest and record installment notes (LO9-2) A company decides to...
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Exercise 9-5 (Static) Compute total interest and record installment notes (LO9-2) A company decides to obtain a small-business loan of $200,000. The financial instutution from which the company borrows offers two optuons: a. Borrow $200,000 at 6% with monthly payments of $3,866.56 over 5 years: b. Borrow $200,000 at 7% with monthly payments of $2,32217 over 10 years. Required: 1. Record the issuance of an instaliment note payable under each option. 2. Record the payments for the first and second month under each option. 3. Determine the total amount of interest paid under each option over the fuil penod of the note Complete this question by entering your answers in the tabs below. Record the issuance of an installment note payable under each option. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account fleld. Round your answers to 2 decimal places, ) Journal entry worksheet 2 Record the issuance of a note for $200,000 at 6% with monthly payments of $3,866.56 over 5 years
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