Ultra Power Inc. engaged in the following transactions related to long term liabilities during 2011:a. On March 1 the company borrowed $50000 for a machine. The loan is to be repaid in equal annual payments of $6793 at the end of each of the next 10 years (beginning February 28 2012); the interest rate is 6%b. On October 1 the company borrowed $100000 from the local credit union at an interst rate of 8%. The loan is for seven yhears and Ultra power will make annual payments of $19207 on September 30 of each year.Requirements1. For each loan prepare an amortization schedule for the first four payments. Show the reduction in principal and the interest expense for each payment.2. What total interest explense related to these two loans would Ultra Power Inc. Show on its income statement for the year ended December 31 20113. How much interst payable would Ultra Power Inc show on its balance sheet at December 31 2011?
