Natalie and Curtis have been experiencing great demand for their cookies and muffins. As a result, they are now thinking about buying a commercial oven. They know which oven they want and that it will cost $17,000. The company already has $5,000 set aside for the purchase and will need to borrow the rest. Natalie and Curtis met with a bank manager to discuss their options. She is willing to lend Cookie & Coffee Creations Inc. $12,000 on November 1, 2020, for a period of 3 years at a 5% interest rate. The terms provide for fixed principal payments of $2,000, on May 1 and November 1 of each year plus 6 months of interest.

Prepare a payment schedule for the life of the note. (If answer is 0, please enter 0. Do not leave any fields blank.)

Interest Period		Cash Payment		Interest Expense		Reduction of Principal		Principal Balance
Nov. 2020								$
May 2021		$		$		$		$
Nov. 2021								$
May 2022								$
Nov. 2022								$
May 2023								$
Nov. 2023								$
Totals		$		$		$

Prepare the journal entry for the purchase of the oven and the issue of the note payable on November 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Nov. 1

Prepare the journal entries on May 1 and November 1 for the note. Assume interest was accured at October 31, year end. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
May 1, 2021Nov. 1, 2021
May 1, 2021Nov. 1, 2021

Determine the current portion of the note payable and the long-term portion of the note payable at October 31, 2021.

Current portion		$
Long-term portion		$