The following schedules describe three notes:

Required:
A. Which schedule describes a periodic payment and lump- sum note?
B. Which schedule describes a lump- sum payment note?
C. Which schedule describes a periodic payment note?
D. What are the annual interest rates on each of the notes?
E. Assuming each note was issued for cash, show the entry to record the issuance of each of the notes.

Schedule 1 Date Cash Payment Interest Expense Principal $8135 8,135 8,135 8,135 8,135 8,135 $2,400 2,056 1,691 1,305 895 463 $5,735 6,079 6,444 6,830 7,240 7,672 Loan Balance $40,000 34,265 28,186 21,742 14,912 7.672 Schedule 2 Carrying Value Date Cash Payment Interest Expense Discount $ 76,260.00 85,411.20 95,660.54 107,168.26 $364 500.00 288,240.00 202,828.80 107,168.26 $635,500.00 711,760.00 797,171.20 892,831.74 1,000,000.00 S1,000,000 Schedule 3 Carrying Value $10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 No Discount or Premium Cash Interest Interest Expense $500,000 500,000 500,000 500,000 $500,000 500,000 500,000 500,000