Every planting season, Twin Farms borrowed a tractor for plowing, tilling, harrowing, planting and similar tasks. Whi new season, they decided it was best to just get a new tractor financed through the Tractor Store. On September 1 , new tractor with a 5-year \$25,000 loan @ 5\% interest, and the first annual payment scheduled for September 1,202 payment required. However, annual cash payments were calculated at $5,774.37. They record the purchase in their the amortization table for the Notes Payable account on the tractor financed from the Tractor Store