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A company decides to obtain a small-business loan of $237,000. The financial institution from which...

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Accounting

A company decides to obtain a small-business loan of $237,000. The financial institution from which the company borrows offers two options:
a. Borrow $237,000 at 6% with monthly payments of $4,581.87 over 5 years.
b. Borrow $237,000 at 7% with monthly payments of $2,751.77 over 10 years.
Required:
Record the issuance of an installment note payable under each option.
Record the payments for the first and second month under each option.
Determine the total amount of interest paid under each option over the full period of the note.

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