A B D E F G H 1 J K L Let's Compare "Notes"! Adapted from E14-16 On January 1, 2020, Carter Bank enters into/makes the following transactions/loans. Instructions (Round answers to the nearest cent.) a. Record the journal entries that should be recorded by Carter Bank for the transactions/loans on January 1, 2020. Preparing an amortization is "uber" helpful. b. Carter Bank has a year end of 12/31/XX. Recored any needed adjusting entries as of this date. Also, record the interest/installment receipt as of 1/1/2021. 1) Makes a loan using a 5 year, $200,000 term note with a customer. The note bears interest at 10% (also, a market rate) and which is paid to Carter annualy starting on 1/1/2021 Rate # of periods Prinicpal Int. Payment Date Accounts Debit Credit 1/1/20 12/31/20 1/1/21 2) Makes a loan using a 5 year, $200,000 installment note with a customer. The note bears interest at 10%, a market rate. Installment payments of $52,759.50 will begin on 1/1/2021 Rate 10.00% # of periods 5 Prinicpal $ 200,000 Payment $52,759.50 Date Accounts Debit Credit 1/1/20 12/31/20 1/1/21 Effective Interest Payment Date 1/1/20 1/1/21 1/1/22 1/1/23 1/1/24 1/1/25 $0.00 $ $0.00 $ $0.00 $ $0.00 $ $0.00 $ Decrease Outstandin in Balance g Balance $ $ $ $ $ $ $ $ $ $ $ Date 1/1/20 1/1/21 1/1/22 1/1/23 1/1/24 1/1/25 Effective Decrease in Outstanding Payment Interest Balance Balance $ 200,000 $52,759.50 $ 20,000 $ (32,759) $ 167,241 $52,759.50 $ 16,724 $ (36,035) $ 131,205 $52,759.50 $ 13,121 $ (39,639) $ 91,566 $52,759.50 $ 9,157 $ (43,603) $ 47,963 $52,759.50 $ 4,796 $ (47,963) $ Increase in Balance Effective Date Payment Interest 1/1/20 1/1/21 $ $ 1/1/22 $ $ 1/1/23 $ $ 1/1/24 $ $ 1/1/25 $ $ $ $ $ $ $ Outstanding Balance $ $ $ $ $ $ - - - - Effective Interest Decrease in Balance Date Payment 1/1/20 1/1/21 $ 1/1/22 $ 1/1/23 $ 1/1/24 $ 1/1/25 $ 1/1/26 $ 1/1/27 $ 1/1/28 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Outstanding Balance $ $ $ $ $ $ $ $ $