Norton Corporation borrowed $300,000 on December 1, 2016. The term of the loan was two years and the interest rate was 7%. Payments are due on the 1st and 15th of each month with the first payment due on December 15, 2016. An amortization schedule for the loan follows:
|
book
|
|
Payment
|
Date
|
Payment
|
Interest
|
Principal
|
Value
|
|
300,000
|
|
1
|
12/15/2016
|
12,992
|
10,500
|
2,492
|
297,508
|
|
2
|
1/1/2017
|
12,992
|
10,413
|
2,579
|
294,929
|
|
3
|
1/15/2017
|
12,992
|
10,323
|
2,669
|
292,259
|
|
4
|
2/1/2017
|
12,992
|
10,229
|
2,763
|
289,496
|
|
5
|
2/15/2017
|
12,992
|
10,132
|
2,860
|
286,637
|
|
6
|
3/1/2017
|
12,992
|
10,032
|
2,960
|
283,677
|
|
7
|
3/15/2017
|
12,992
|
9,929
|
3,063
|
280,614
|
|
8
|
4/1/2017
|
12,992
|
9,821
|
3,171
|
277,443
|
|
9
|
4/15/2017
|
12,992
|
9,711
|
3,281
|
274,162
|
|
10
|
5/1/2017
|
12,992
|
9,596
|
3,396
|
270,765
|
|
11
|
5/15/2017
|
12,992
|
9,477
|
3,515
|
267,250
|
|
12
|
6/1/2017
|
12,992
|
9,354
|
3,638
|
263,612
|
|
13
|
6/15/2017
|
12,992
|
9,226
|
3,766
|
259,846
|
|
14
|
7/1/2017
|
12,992
|
9,095
|
3,897
|
255,949
|
|
15
|
7/15/2017
|
12,992
|
8,958
|
4,034
|
251,915
|
|
16
|
8/1/2017
|
12,992
|
8,817
|
4,175
|
247,740
|
|
17
|
8/15/2017
|
12,992
|
8,671
|
4,321
|
243,419
|
|
18
|
9/1/2017
|
12,992
|
8,520
|
4,472
|
238,947
|
|
19
|
9/15/2017
|
12,992
|
8,363
|
4,629
|
234,318
|
|
20
|
10/1/2017
|
12,992
|
8,201
|
4,791
|
229,527
|
|
21
|
10/15/2017
|
12,992
|
8,033
|
4,959
|
224,568
|
|
22
|
11/1/2017
|
12,992
|
7,860
|
5,132
|
219,436
|
|
23
|
11/15/2017
|
12,992
|
7,680
|
5,312
|
214,125
|
|
24
|
12/1/2017
|
12,992
|
7,494
|
5,498
|
208,627
|
|
25
|
12/15/2017
|
12,992
|
7,302
|
5,690
|
202,937
|
|
26
|
1/1/2018
|
12,992
|
7,103
|
5,889
|
197,048
|
|
27
|
1/15/2018
|
12,992
|
6,897
|
6,095
|
190,952
|
|
28
|
2/1/2018
|
12,992
|
6,683
|
6,309
|
184,644
|
|
29
|
2/15/2018
|
12,992
|
6,463
|
6,529
|
178,114
|
|
30
|
3/1/2018
|
12,992
|
6,234
|
6,758
|
171,356
|
|
31
|
3/15/2018
|
12,992
|
5,997
|
6,995
|
164,362
|
|
32
|
4/1/2018
|
12,992
|
5,753
|
7,239
|
157,122
|
|
33
|
4/15/2018
|
12,992
|
5,499
|
7,493
|
149,630
|
|
34
|
5/1/2018
|
12,992
|
5,237
|
7,755
|
141,875
|
|
35
|
5/15/2018
|
12,992
|
4,966
|
8,026
|
133,848
|
|
36
|
6/1/2018
|
12,992
|
4,685
|
8,307
|
125,541
|
|
37
|
6/15/2018
|
12,992
|
4,394
|
8,598
|
116,943
|
|
38
|
7/1/2018
|
12,992
|
4,093
|
8,899
|
108,044
|
|
39
|
7/15/2018
|
12,992
|
3,782
|
9,210
|
98,834
|
|
40
|
8/1/2018
|
12,992
|
3,459
|
9,533
|
89,301
|
|
41
|
8/15/2018
|
12,992
|
3,126
|
9,866
|
79,434
|
|
42
|
9/1/2018
|
12,992
|
2,780
|
10,212
|
69,222
|
|
43
|
9/15/2018
|
12,992
|
2,423
|
10,569
|
58,653
|
|
44
|
10/1/2018
|
12,992
|
2,053
|
10,939
|
47,714
|
|
45
|
10/15/2018
|
12,992
|
1,670
|
11,322
|
36,392
|
|
46
|
11/1/2018
|
12,992
|
1,274
|
11,718
|
24,674
|
|
47
|
11/15/2018
|
12,992
|
864
|
12,128
|
12,545
|
|
48
|
12/1/2018
|
12,992
|
447
|
12,545
|
0
|
Required:
1. Record all the journal entries (including adjusting journal entries) for the month of December, 2016.
2. Prepare (in partial format) the liability section of the firm's balance sheet at December 31, 2016.
3. Prepare the 'Cash Flow from Financing Activities' section of the Statement of Cash Flows for 2016.