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Hu Consulting needs to borrow $250,000 and is trying to determine what type of debt instrument...

Hu Consulting needs to borrow $250,000 and is trying to determine what type of debt instrument to use. The company is considering two debt instruments: a long-term notes payable and a mortgage payable. The interest rate on both instruments is 6% and both instruments mature in ten years. The mortgage payable requires monthly payments of $2,775.51. The money will be borrowed on January 1, 2020.

A. Create an amortization schedule for the first two annual payments of the long-term notes payable. The payments will be made at the end of each year on December 31 and the principal amount each year is $25,000.

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