Daniel and tara borrow 250000 to purchase a frozen yogurt

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Reference no: EM13566559

Daniel and Tara borrow $250,000 to purchase a frozen yogurt franchise business. They signed a note due in ten years with the annual rate of interest being charged on the loan at 6%. They are required to make equal annual payments to the bank at the end of each of the 10 years.

1.What are the amounts of the annual payments? Show your computations.

2.Write a journal entry for the payment at the end of the first year. Show your computations.

Accounts	Debits	Credit

3.Write a journal entry for the payment at the end of the second year. Show your computations.

Accounts	Debits	Credit

Reference no: EM13566559

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