$(10)$

Q$.$ No $3$: On December $31,2000$ Kay architectural services purchased equipment at a cost, paying $$20,215,$ paying $$5,000$ cash and issuing a two$-$year installment note payable for $$15,215.$ This note calls for semi$-$annual installments of $$4800,$ which include interest compound at annual rate of $20\%$ per year $(10\%$ per semi$-$annual period$).$ Payments are due on June $30,$ and December $31.$ The first payment is due June $30,2001,$ and the note will be fully amortized at December $31,2002.$ Kay can retire this note at any interest payment date by paying the unpaid balance plus any accrued interest.

Required:

Prepare an amortization table showing the allocation of each of the four semiannual payments between interest expense and reduction in the principle amount of note.

Prepare journal entries to record the issuance of this note and each of the four semiannual payments in $2001$ and $2002.$