IV Notes Payable a. Below market rate note Falk Company purchased a new Machine with a list price of $50,000 on January 1, 2020. Falk paid $5,000 down and financed the balance over 4 years with monthly payments of $956.77 each. The stated interest rate was 1% annual. The low interest deal was Option 1 for the purchase, Option 2 was a $3,000 rebate. Record the purchase of the machine: Prepare the legal amortization schedule covering 2 payments 1/1/20 1/31/ 201 2/29/20 1 Calculate the effective monthly interest rate: Prepare the effective amortization schedule covering 2 payments 1/1/20 1/31/20 2/29/20 Record the entry for the second payment on Feb. 29, 2020 Could be off a few $ for rounding in payment