1. (12 points). Border Company purchased a truck that cost $110,000 on January 1, 2020. The company paid $10,000 cash and signed a $100,000 note payable that specified four equal annual payments (at each year-end), each of which includes a payment on the principal and interest on the unpaid balance at 10% per annum.

A. Calculate the amount of each equal payment (round your answer to the nearest whole dollar amount).

B. Prepare the journal entry to record the purchase of the truck.

C. Prepare the journal entry to record the first annual payment on the note (assume no interest has been accrued during the year). D. Prepare the journal entry to record the second annual payment on the note (assume no interest has been accrued during year 2).