On January 1st, 2018, the company DECORA, SA acquires a machine, useful life 5 years for a purchase price 25.000 eur.

In payment, the company issues an installment note payable for this amount, plus interests at 12 percent per annum (or 1 percent per month).

This note will be paid in 5 monthly installments of 5.151 eur, beginning on January 1st.

You can see the amortization table allocating payments between interest and principal below:

Period	Payment Date	Monthly Payment	Interest expense	Reduction in Unpaid Balance	Total amortized amount
1	January	5.151	250	4.901	4.901
2	February	5.151	201	4.950	9.851
3	March	5.151	151	5.000	14.851
4	April	5.151	101	5.050	19.900
5	May	5.151	51	5.100	25.000

1. From the table indicate the total amount of interests paid over the 5 installments
2. Prepare the journal entry to record the first monthly payment January 1st

3. Indicate the liability amount on March 31 that will appear in the Balance