On december 28, 20x1, company purhcased a used backhoe for resale at an agreed price of $40,000.

terms of purchase: 1: $10,000 down payment 2: note payable face amount = $30,000. Maturity date is 12/28/20x3

Give the journal entries that Evans should have made for 20x1 and 20x2. Also give the entries that should be made through the maturity date, 12/28/20x3. Ignore materiality - i.e., record interest for short periods, e.g., a few days at year end. When calculating interest, use 365 days. You may not use the straight-line method. Assume a discount rate of 12%.

I need help figuring out exactly where the numbers come from with the correct formula. so please show work thanks.