A Company Purchased Two New Delivery Vans for a Total

question 139

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A company purchased two new delivery vans for a total of $250,000 on January 1, Year 1. The company paid $40,000 cash and signed a $210,000, 3-year, 8% note for the remaining balance. The note is to be paid in three annual end-of-year payments of $81,487 each, with the first payment on December 31, Year 1. Each payment includes interest on the unpaid balance plus principal.
(1) Prepare a note amortization table using the format below: (2) Prepare the journal entries to record the purchase of the vans on January 1, Year 1 and the second annual installment payment on December 31, Year 2.

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Raw Materials

Basic materials from which products are made, typically extracted from the earth and used in the initial stages of production.

Different Industries

Various sectors of the economy engaged in diverse forms of productive activities, ranging from agriculture and manufacturing to services and technology.

Interact

The act of two or more entities acting on or influencing each other, commonly used in social, biological, and technological contexts.

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A conceptual framework for understanding the complex interactions and exchanges of materials and energy between organisms within an ecosystem.