Data for the next 4 questions: Royall Company purchased a delivery truck at $25,000 plus 8% sales taxes. Royall paid $3,000 in cash and financed the rest at 6% requiring 40 equal monthly payments at the end of each month.

16.Provide journal entry for the purchase date of truck.

	Debit	Credit

17.Compute the amount the monthly payment that Royall must be made.

18.Complete the following partial amortization schedule. Include only the final number for each cell.

Schedule Title:

Pay#
0
1
2

19.Provide the necessary journal entry that company must make for the 2nd monthly payment.

	Debit	Credit

20. Factory equipment was purchased by issuing a 5-year note payable which requires a single payment of $150,000 at the maturity of the note. The single payment includes the price of the equipment plus annually compounded interest. The market rate of interest at the time of signing the note was 3%. Provide journal entry for recoding the purchase of equipment.

	Debit	Credit