On January 1, 2021, Crane Corp. borrows $21,600 by signing a 3-year, 9% note payable. The note is repayable in three annual fixed principal payments on December 31 of each year.

1.Prepare installment payment schedule for the note. (12 marks)

2.Prepare the journal entry to record the note on January 1, 2021 (2 marks).

3.Prepare the journal entry to record the first installment payment on December 31, 2021. (3 marks)

Question 1 (17 marks) On January 1, 2021, Crane Corp. borrows $21,600 by signing a 3-year, 9% note payable. The note is repayable in three annual fixed principal payments on December 31 of each year. 1. Prepare an installment payment schedule for the note. (12 marks) 2. Prepare the journal entry to record the note on January 1, 2021 (2 marks). 3. Prepare the journal entry to record the first installment payment on December 31, 2021