On 1/1/20 we buy equipment and sign a 3-year note payable for $36,500.

The market value is $36,500. Payments of $13,655 include both principal and interest

and are to be made annually starting on 1/1/21. The present value of the payments is

$36,500. The bank would require the purchaser to pay interest of 6% in order to

borrow from them.

Note: Be sure to show the date of each journal entry. The right journal entry on the wrong date is wrong

a. Prepare an amortization table

b. Prepare the journal entry for 1/1/20

c. Prepare the journal entry for 12/31/20

d. Prepare the journal entry for 1/1/21