Question - Grace Herron has just approached a venture capitalist for financing for her new business venture, the development of a local ski hill. On July 1, 2013, Grace was loaned $163,000 at an annual interest rate of 8%. The loan is repayable over 5 years in annual installments of $40,824, principal and interest, due each June 30. The first payment is due June 30, 2014. Grace uses the effective-interest method for amortizing debt. Her ski hill company's year-end will be June 30.
Prepare an amortization schedule for the 5 years, 2013-2018.
Prepare all journal entries for Grace Herron for the first 2 fiscal years ended June 30, 2014, and June 30, 2015.
Show the balance sheet presentation of the note payable as of June 30, 2015.