A company buys a piece of equipment at a cost of $36,000, makes a down payment of $6,000, and signs a three-year promissory note for the remaining $30,000. The company will make three equal annual payments, beginning one year after the equipment is purchased. The interest rate that the company will pay is 10%.

a. Calculate the annual payment required for this promissory note. b. Make the journal entry to record the third and last payment.