Precision Tools Inc. has decided to purchase equipment from Triad Machining Inc. on April 1, 2023, to expand its production capacity to meet customer demand for its product. The price of the equipment is $650,000. Since Precision is facing a temporary cash crunch, it has decided to issue a $900,000, 5-year, zero interest bearing note to Triad Machining to pay for the new equipment. The equipment is estimated to have a useful life of 6 years with an estimated salvage value of $10,000. The company uses straight line method to record depreciation and prorates depreciation to the nearest whole month. The fiscal year end is Dec 31.

Prepare the amortization schedule for the Note.

Record all the journal entries for the Note from 2023 until the note is repaid.

Assume the equipment is sold on July 1,2027 for $100,000 cash. Record all journal entries

for the equipment from the time of purchase to the time of sale. Ignore taxes.