A Company Purchased Two New Delivery Vans for a Total

question 53

Essay

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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Definitions:

Intervertebral Foramen

An opening between adjacent vertebrae through which nerves and blood vessels pass.

Coccyx

The small, triangular bone at the base of the spinal column, consisting of three to five fused vertebrae, commonly referred to as the tailbone.

Spinous Process

A bony projection off the posterior (back) of each vertebra, serving as a point for muscle and ligament attachment.

Spinous Process

A bony projection off the posterior (back) part of each vertebra, serving as a point for muscle and ligament attachment.