On 2/1/20, the company purchased a large fishing boat for $32,000 of which had a down payment of $4,500 and the rest of borrowed from First Hawaiian Bank. The Note Payables principle has a 5% annual interest rate due every 8-months while the principle is due at maturity date in 5 years. The item is depreciated using the straight-line method and has a useful life of 10 years.

1. Prepare Journal Entries in the General Journal

2. Post the journal entries to the General Ledger

3. Prepare Unadjusted Trial Balance as of 12/31/20.