On January 1, 2014, Parker Company obtained a $125,000, four-year, 6% installment note from Clark Bank. The note requires annual payments of $36,074, beginning on December 31, 2014.

a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 3.

b. Journalize the entries for the issuance of the note and the four annual note payments.
c. Describe how the annual note payment would be reported in the 2014 incomestatement.

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Decrease December 31 January 1 Note Interest Expse In Notes Carrying Amount (B-C)(A-D) 519,742 15,229 10,445 5,374 Carrying Payment (6% of January 1 Payable For the Year Ending December 31, 2013 December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2017 Amount (cash pald) Note Carrying Amount) $24,000 5,698 5,698 5,698 5,698 53745.690 $28,490 1,440 (6% of $24,000) 4258 4,513 4,784 5,071 5374 $24,000 19,742 15,229 10,445 1,185 (6% of $19,742) 914(6% of $15,229) 627 (6% of $10,445) 324"(6% of $5,374) $4,490 Rounded (S5,374- S5,698)