Question: On July 1 , 2 0 2 3 , Cullumber L t d . received a loan from its bank for $ 1 6 ,

On July 1,2023, Cullumber Ltd. received a loan from its bank for $16,000 bearing interest at 5%. The loan is payable in two annual instalments of $8,605 principal and interest on June 30 each year. The company records adjusting journal entries annually at year end on December 31.
(a)
Prepare an instalment payment schedule for the term of the loan. (Round answers to 0 decimal places, eg.5,255.)
Annual
Interest
Period
Cash Payment
Interest Expense
Reduction of Principal
Principal Balance
July 1,
2023
June
30,
2024
$
$
$
June
30,
2025
On July 1,2023, Cullumber Ltd. received a loan from its bank

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