Georgia company borrowed 600,000 from a bank on may 1, 2007. the bank required a return of 12% on the loan. The loan is to be repaid over 12 months in equal installments. georgia companys fiscal year ends on december 31.
*prepare an amortization table for the loan for the 12 month period.
*how much interest expense would Georgia report on the loan for its 2007 fiscal year?
*how much interest expense would it report for 2008?
*what amount of liability would Georgia report for the loan at the end of 2007?
*What amount would it report at the end of 2008?