Pockets lent $20,000 to Lego Construction on January 1, 2018. Lego signed a three-year 5% installment note to be paid in three equal payments at the end of each year.

1. Please Prepare the journal entry on January 1, 2018 for Pockets' lending the funds.
2. Please Calculate the amount of one installment payment.
3. What is the amortization schedule for the three-year term of the installment note.
4. Please Prepare Pockets' journal entry for the first installment payment on December 31, 2018.
5. Please Prepare Pockets' journal entry for the third installment payment on December 31, 2020.