Question: Grace Herron has just approached a venture capitalist for financing for her new business venture, the development of a local ski hill. On July 1,

Grace Herron has just approached a venture capitalist for financing for her new business venture, the development of a local ski hill. On July 1, 2013, Grace was loaned $232,000at an annual interest rate of6%. The loan is repayable over5years in annual installments of $55,076, principal and interest, due each June 30. The first payment is due June 30, 2014. Grace uses the effective-interest method for amortizing debt. Her ski hill companys year-end will be June 30.

Prepare all journal entries for Grace Herron for the first 2 fiscal years ended June 30, 2014, and June 30, 2015.

Show the balance sheet presentation of the note payable as of June 30, 2015. (Hint:Be sure to distinguish between the current and long-term portions of the note.)

Prepare an amortization schedule for the 5 years, 20132018

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