Question: 3: Note Payable in Installments On January 1, 2013, Joseph Jackson Corporation purchased equipment having a fair value of $72,054.94 by issuing a $90,000 note,

3: Note Payable in Installments On January 1, 2013, Joseph Jackson Corporation purchased equipment having a fair value of $72,054.94 by issuing a $90,000 note, payable in three $30,000 annual installments beginning December 31, 2013. Required: a) What is the effective interest rate on this note? b) Prepare the journal entry to record the purchase of the equipment. c) Prepare an interest amortization table for the note using the effective interest method. d) Prepare the journal entries to record yearly interest expense and repayments over the life of the note. 1. December 31, 2013 2. December 31, 2014 3. December 31, 2015

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