Reference no: EM132596991

Question - On July 1, 2018, "ABC" Company borrowed $200,000 form a local bank at an interest rate of 12%. According to the loan agreement,

1. The company must repay the loan, by making 4 payments per year (1/1, 1/4, 1/7, 1/10) for 5 years.

2. The total amount of cash that "ABC" company must pay to the bank over the 5 years period will be equal to $268,862.80

Required: Based on the above given information, answer the questions

1- Prepare loan amortization table for the year 2018 and 2019.

2- What is the amount of interest expense that must be presented on "ABC" Company income statement for the year ended December, 31, 2018?

3- What is the amount of interest expense that must be presented on "ABC" Company income statement for the year ended December, 31, 2019?

4- Show the presentation on the current and non-current liability on the statement of financial position as on 31/12/2018.