On September 1, 2013 Basson Company borrows $420,000 cash from the bank. The terms of the note require Basson to pay six equal annual installment payments on August 31. The interest rate is 4%. 

a) Use the present value table (click to pop open) to calculate the total amount of each installment payment.  Round answers to the nearest whole dollar.

Installment Payment Amount: $

b) Complete the amortization table for the installment note. Round your amounts to the nearest whole dollar. Hint

Payment Date	Beginning Balance	Installment Payment	Interest Expense	Notes Payable Principle Amount	Ending Balance
8/31/2014
8/31/2015
8/31/2016
8/31/2017
8/31/2018
8/31/2019
Total

c) Prepare the journal entry Basson Company will need to record in its accounting records on August 31, 2014. Round answers to the nearest whole dollar.

Journal

Date	Description	Debit	Credit
8/31/2014
8/31/2014
8/31/2014
8/31/2014	to record the first installment payment on installment note

d) Prepare the journal entries Basson Company will need to record in its accounting records to record the accrual of interest on December 31, 2014 before the year end financial statements are prepared. Round answers to the nearest whole dollar.

Journal

Date	Description	Debit	Credit
12/31/2014
12/31/2014
12/31/2014	to record the accrual of interest at year end

e)  Prepare the journal entry Basson Company will need to record in its accounting records on August 31, 2015 (the second installment payment - Remember you accrued interest at 12/31/2014.) Round answers to the nearest whole dollar.

Journal

Date	Description	Debit	Credit
8/31/2015
8/31/2015
8/31/2015
8/31/2015
8/31/2015	to record the second installment payment on installment note.