Craig has decided to start snow plowing during the winter months. He purchased a heavy-duty dump truck with plow and salter from Power Equipment for $40,000 on October 1st, 2026. He paid $1,000 as a down payment and the remaining balance on a 5% -7 year note to Power Equipment. You will be completing several accounting activities in regards to this purchase.

1. Use the write check function in QB Online to record the entire purchase (down payment and capitalization of the truck and related liability). Use check number 171. Create accounts as needed in QB Online. You may find it helpful to write out the journal entry first before completing it in QB Online.

2. Prepare amortization schedules in Excel for the purchase of the Truck with snow plow. Craig wants to know the total interest cost if he made monthly payments or quarterly payments. You will calculate the payments using the PMT function. Your amortization table should show the principal and interest amount for each payment for the entirety of the loan. The payments will begin on December 1st, 2026. You can use a template in Excel or create the amortization tables. You can use the same workbook for both tables you create. Label them appropriately. Be sure your amortization table is professional and fits on one page. Highlight the total interest paid for each option.