On May 31, 2014, Iceflow Technologies Inc. borrowed $400,000 from a bank by signing a four-year installment note bearing interest at 14%. The terms of the note require equal semi-annual payments each year beginning on November 30, 2014.

Required
1. Calculate the size of each installment payment.
2. Complete an installment note amortization schedule for this note similar to Exhibit 15.19.
3. Present the journal entries that Iceflow Technologies would make to record the first payment on the note, the accrued interest as of December 31, 2014 (the end of the annual reporting period), and the second payment on the note.
4. Now assume that the note does not require equal payments but does require eight payments that include accrued interest and an equal amount of principal in each payment. Complete an installment note amortization schedule for this note similar to Exhibit 15.18. Present the journal entries that Iceflow would make to record the first payment on the note and the accrued interest as of December 31, 2014 (the end of the annual reporting period).