On December 31, 2023, Sack Port Ventures Inc. borrowed $90,000 by signing a four-year, 5% installment note. The note requires annual payments of accrued interest and equal amounts of principal on December 31 of each year from 2024 through 2027.

1. How much principal will be included in each of the four payments?

2. Prepare an amortization table for this installment note like the one presented in Exhibit 14.19.

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Period Ending Dec. 31/23 Dec. 31/24 Dec. 31/25 End of Year 2025 2024 2023 (A) Beginning Balance Prior (E) $60,000 40,000 20,000 $0 Principal Interest (B) Debit Interest Expense 8% x (A) $4,800 3,200 1,600 $9,600 $5,000 $20,000 Principal Payments $20,000 $20,000 $20,000 $10,000 (C) Debit Notes Payable $60,000/3 $20,000 20,000 20,000 $60,000 $15,000 Payment Pattern (D) Credit Cash (B)+(C) $24,800 23,200 21,600 $69,600 Decreasing Accrued Interest $1,600 (E) Ending Balance (A)-(C) $40,000 20,000 -0- $20,000 $3,200 Decreasing Total Payments $4,800 $25,000