One question two parts Recording Entries for a Zero$-$Interest$-$Bearing Note Payable Recording Entries for a Zero$-$Interest$-$Bearing Note Payable

Required

Stated Rate $=5\%$

e$.$ Repeat the requirements of parts $a,b,$ and $c$ with the stated interest on the note as $5\%.$

e$.($Part a: prepare a debt amortization schedule for the note$)$

Note: Round your answers to the nearest whole dollar. Do not use negative signs with your answers.

e$.($Part b: prepare the entry for issuance of the note in exchange for land on January $1$ of Year $1)$

e$.($Part c: prepare the entries on December $31$ of Year $1,$ Year $2,$ and Year $3$ to record the accrual of interest, and on December $31$ of Year $3$ to record the repayment of the note at maturity$)$

e$.$ Does the total cost of borrowing change when the stated rate is $5\%$ rather than $0\%?$

Yes, the total cost of borrowing increases.

No$,$ the total cost of borrowing does not change.

Yes, the total cost of borrowing decreases.

Required

Stated Rate $=5\%$

a$.$ Prepare a debt amortization schedule for the note.

Note: Round your answers to the nearest whole dollar. Do not use negative signs with your answers.

b$.$ Prepare the entry for issuance of the note in exchange for land on January $1$ of Year $1.$

c$.$ Prepare the entries on December $31$ of Year $1,$ Year $2,$ and Year $3$ to record the accrual of interest, and on December $31$ of Year $3$ to record the repayment of the note at maturity $.$

d$.$ Does a zero$-$interest$-$bearing note bear no interest or cost of borrowing? Explain.

Please answer all parts of the question.