North Sea Drilling Co. purchased machinery on December 31, 2020 as follows: Down Payment $ Annual Payments Number of annual payments Assumed interest rate 50,000 56,000 4 10% Annual payments will be made on December 31 of each year Prepare the Schedule of Amortization. Carrying Value Date Cash Paid Interest Expense Amortization of Note 12/31/2020 $ 50,000.00 12/31/2021 $ 56,000.00 $ 5,000.00 $ 51,000.00 101,000.00 12/31/2022 56,000.00 5,100.00 45,900.00 146,900.00 12/31/2023 56,000.00 4,590.00 41,310.00 188,210.00 12/31/2024 56,000.00 4,131.00 37,179.00 225,389.00 Prepare the journal entries that would be recorded for the purchase and for the payments and interest for each of the annual payments.