Watson Company purchased a truck that cost $17,000. The company signed a $17,000 note payable that specified four equal annual payments (at each year-end), each of which includes a payment on the principal and interest on the unpaid balance at 10% per annum.
A. Compute the amount of each equal payment (round to the nearest dollar).
B. Give the entry to record the purchase of the truck.
C. Give the entry to record the first annual payment on the note .
D. Will the interest paid with the first annual payment be more or less than the interest paid with the second annual payment? Explain your answer.

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The Answer of Watson Company purchased a truck that cost $17,000. The company signed a $17,000 note payable that specified four equal annual payments (at each year-end), each of which includes a payment on the principal and interest on the unpaid balance at 10% per annum.
A. Compute the amount of each equal payment (round to the nearest dollar).
B. Give the entry to record the purchase of the truck.
C. Give the entry to record the first annual payment on the note .
D. Will the interest paid with the first annual payment be more or less than the interest paid with the second annual payment? Explain your answer.

Watson Company Purchased a Truck That Cost $17,000