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.
a. prepare an amortization table for the loan for the 12 month period.
b. how much interest expense would Georgia report on the loan for its 2007 fiscal year?
c. how much interest expense would it report for 2008?
d. what amount of liability would Georgia report for the loan at the end of 2007?
e. What amount would it report at the end of 2008?