On July 1, 2021, Gismo Distributors Inc. finances the purchase of a new pickup truck by making a cash down payment of $ 5,000 and issuing a $ 30,000 two-year, 10% note payable for the balance. The note is payable in four equal semi-annual blended payments of $ 8,460 due on December 31, and June 30 of each year.
Instructions
a) Record the purchase of the truck.
b) Prepare the amortization table for the note payable.
c) Record the first and last payments made on the note.

Question

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The Answer of On July 1, 2021, Gismo Distributors Inc. finances the purchase of a new pickup truck by making a cash down payment of $ 5,000 and issuing a $ 30,000 two-year, 10% note payable for the balance. The note is payable in four equal semi-annual blended payments of $ 8,460 due on December 31, and June 30 of each year.
Instructions
a) Record the purchase of the truck.
b) Prepare the amortization table for the note payable.
c) Record the first and last payments made on the note.