On October 4, 2019, the Eldora Company purchased a piece of equipment for $80,000 with a down payment of $10,000. The balance owed was financed with a two-year loan that will require monthly payments starting November 4, 2019. The annual interest rate is 4.63%. (Record journal entries to the penny and display financial statement items to the penny)

Use the following website to access an amortization schedule:

http://www.amortization-schedule.info/calculator

Instructions: Based on the amortization schedule, complete the following items:

1. Prepare all of the required journal entries for 2019, assuming that adjusting journal entries are recorded only at the end of the year.

2. Determine the total interest expense for 2019.

3. Show how the note payable should be classified on the Balance Sheet at December 31, 2019.

4. Prepare the reversing journal entry on January 1, 2020.

5. Prepare all of the required journal entries for 2020, assuming that adjusting journal entries are recorded only at the end of the year.

6. Determine the total interest expense for 2020.

7. Show how the note payable should be classified on the Balance Sheet at December 31, 2020.