PART B (8 marks) A company purchased two new trucks for a total of $250,000...
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PART B (8 marks) A company purchased two new trucks for a total of $250,000 on January 1, 2018. The company paid $40,000 cash and signed a $210,000, 3-year, 8% installment note for the remaining balance on the date of purchase. The note was to be paid in three annual payments of $81,487 each, with the first payment on December 31, 2018. Required: 1) Prepare an installment note amortization table using the following format. Show your calculations below the table (round to nearest dollar): January 1 Carrying Amount Note Payment (cash) Interest Expense Decrease In Note Payable December 31 Carrying Amount For the year ended Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2020 2) Prepare the journal entries to record the purchase of the trucks on January 1, 2018 and the second annual payment on December 31, 2019. 3) State the difference in periodic cash payment between bond and installment
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