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Prepare the amortization schedule for the years

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Reference no: EM132768323

Question - Anub'arak plc owes Rylai Ltd. a 10-year, 10% note in the amount of £330,000 plus £33,000 of accrued interest. The note is due today, December 31, 2019. Because Anub'arak is in financial trouble, Rylai agrees to forgive the accrued interest, £30,000 of the principal and to extend the maturity date to December 31, 2022. Interest at 10% of revised principal will continue to be due on 12/31 each year. Given Anub'arak's financial difficulties, the market rate for its loans is 12%.

Required -

a. Prepare the amortization schedule for the years 2019 through 2022.

b. Prepare all the necessary journal entries on the books of Anub'arak for the years 2019, 2020, and 2021.

Reference no: EM132768323

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