On November 30, 2014, Calibaut Ltd. borrowed $100,000 from a bank by signing a four-year installment note bearing interest at 12%. The terms of the note require equal payments each year on November 30, starting November 30, 2015.

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 Calibaut would make to record accrued interest as of December 31, 2014 (the end of the annual reporting period), and the first payment on the note.
4. Now assume that the note does not require equal payments but does require four 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 Calibaut would make to record accrued interest as of December 31, 2014 (the end of the annual reporting period), and the first payment on the note.