A company purchased two new delivery vans for a total of $250,000 on January 1, Year 1. The company paid $40,000 cash and signed a $210,000, 3-year, 8% note for the remaining balance. The note is to be paid in three annual end-of-year payments of $81,487 each, with the first payment on December 31, Year 1. Each payment includes interest on the unpaid balance plus principal.

a. Prepare a note amortization table using the format below:

Period		Debit	Debit
Ending	Beginning	Interest	Notes	Credit	Ending
Date	Balance	Expense	Payable	Cash	Balance
12/31/Yr 1
12/31/Yr 2
12/31/Yr 3

b. Prepare the journal entries to record the purchase of the vans on January 1, Year 1 and the first and second annual installment payments on December 31, Year 1 and Year 2.