CHAPTER 14 Bonds and Long Term Notes Payable amortization schedule for this note similar to Exhibit 14.18. Present the journal entries that Iceflow would make to record the first payment on the note and the accrued interest as of December 31, 2020 (the end of the annual reporting period). Problem 14-12B Lease liabilities LO9 CHECK FIGURE: 2. Total interest expense = $90,845 Peerless Carpet Corp, leased a machine on January 1, 2020, under a contract calling for six annual payments of $60,000 on December 31, 2020 through 2025. The machine becomes the property of the lessee after the sixth payment. The machine was predicted to have a service life of seven years and no residual value and the inter- est rate available to Peerless for equipment loans was 9% on the day the lease was signed. The machine was delivered on January 8, 2020, and was immediately placed in service. Required 1. Determine the initial net liability created by the lease and the cost of the leased asset. 2. Prepare a table showing the calculation of the amount of interest expense allocated to each year the lease is in effect and the carrying amount of the liability at the end of each of those years. 3. Prepare the entry to record the leasing of the machine. 4. Prepare entries that would be made on December 31, 2021, to record the annual depreciation on a straight- line basis, and the recording of the lease payment. Also show how the machine and the lease liability should appear on the December 31, 2021, balance sheet. ETHICS CHALLENGE EC 14-1 oliticians needed a new headquarters building for their municipal government. The price tag om unlikely to approve a bond