1010-4 PROBLEM 10.40 separation and Use of an On October 1, 2018, Jenco signed a four-year. $100, 1. 2018, Jenco signed a four-year S100.000 note payable to Vicksburg State Bank in conjunction with the purchase of equipme with the purchase of equipment. The note calls for interest at an annual rate of 14 per cent ( percent per month). The note is fully amortizing over a period of 48 months The bank sent lenco he bank sent Jenco an amortization table showing the allocation of monthly payments between St and principal over the life of the loan. A small part of this amortization table is illustrated as follows. (For convenience, amounts have been rounded to the nearest dollar.) Amortization Table AMORTIZATION TABLE (12%, 4-YEAR NOTE PAYABLE FOR $100,000; PAYABLE IN 48 MONTHLY INSTALLMENTS OF $2,633) Payment Unpaid Balance Interest Period Interest Expense Monthly Payment Principal Reduction Date $100,000 Issue date 98,367 Oct. 1. 2018 Nov. 1 Dec. 1 $1,000 $2,633 2,633 $1,633 1,649 96,718 984 Instructions a. Explain whether the amounts of interest expense and the reductions in the unpaid principal are likely to change in any predictable pattern from month to month. b. Prepare journal entries to record the first two monthly payments on this note. Chapter 10 Liabilities ified as current liabilities in Je ompute any additional dolls. c. Complete this amortization table for two more monthly installments. d. Will any amounts relating to this four-year note be classified as curre December 31, 2018, balance sheet? Explain, but you need not compute amounts r bonds with a face value anthorization to issue 10-year bonds with a