Answer:
Pecan Co.
a. Accounting equation: Assets = Liabilities + Equity
Assets: Cash ($100,000 + 300,000 - 100,000 - 150,000 - 69,292) + Land ($100,000) + Accounts Receivable ($260,000) = Liabilities: Bank Loan ($245,708) + Equity: Common stock ($100,000) + Retained Earnings ($260,000 - 150,000 - 15,000)
b1: Income Statement
Service Revenue       $260,000
Operating expenses    150,000
Interest expense            15,000
Net income                  $95,000
Balance Sheet
Cash                                 $80,708
Accounts Receivable      260,000
Land                                 100,000
Total assets                  $440,708
Bank Loan                    $245,708
Common stock               100,000
Net income                      95,000
Total liabilities+equity $440,708
b2. The interest expense for 2019 is $15,000 ($300,000 * 5%)
The interest expense for 2020 is $12,285.40 ($300,000 +15,000 - 69,292) * 5%.
Explanation:
a) Data and Calculations:
Cash $100,000 + 300,000 - 100,000 - 150,000 - 69,292 = $80,708
Accounts Receivable $260,000
Land $100,000
Common stock $100,000
Bank Loan $300,000 + 15,000 - 69,292 = $245,708
Service Revenue $260,000
Operating expenses $150,000
Amortization Schedule, using an online financial calculator:
 Beginning  Interest              Principal	Ending 
            Balance                                                       Balance
1	$300,000.00	$15,000.00	$54,292.44	$245,707.56
2	$245,707.56	$12,285.38	$57,007.06	$188,700.50
3	$188,700.50	$9,435.02	$59,857.41	$128,843.08
4	$128,843.08	$6,442.15	$62,850.29	$65,992.80
5	$65,992.80	$3,299.64	$65,992.80	$0.0