Little Company borrowed $53,000 from Sockets on January 1, 2016, and signed a three-year, 6% installment note to be paid in three equal payments at the end of each year. The present value of an ordinary annuity of $1 for 3 periods at 6% is 2.67301. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

3.

Prepare an amortization schedule for the three-year term of the installment note. (Leave no cell blank, enter zero where ever required. Round your answers to nearest whole dollar amount.)

year	cash payment	effective interest	increase in balance	outstanding balance
2016
2017
2018
total

4.

Prepare the journal entry for Sockets first installment payment received on December 31, 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

5.	Prepare the journal entry for Sockets third installment payment received on December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)