Jones Delivery Services bought a truck by paying $10,000 cash down and signing a non-interest-bearing note with 5 payments of $12,000 each. Current interest rates were 8%. (13 pts.)
Present value of 1, 5%, 8 periods	0.6768
Present value of 1, 8%, 5 periods	0.68
Present value of ordinary annuity, 8%, 5 periods	3.993
Present value of ordinary annuity, 5%, 8 periods	6.463
Required:
1) Record the truck purchase. (3 points)
2) Prepare the amortization schedule through the first two payments. (4 points)
3) Prepare the journal entry(ies) for the first payment.(2 points)
4) Show the notes payable section of the balance sheet at the time of the truck purchase and after the first payment. (2 points)
5) Why is the Discount on N/P subtracted from the N/P on the balance sheet (2 points)