Installment Note. On January $1,20$x$1,$ agree to buy equipment in exchange for six payments $$2,000$ each, with the first one due today and the rest due at the end of each year $($including $20$x$1).$ The stated interest rate is $12\%.$ READ THE QUESTION! Circumstances do NOT always remain constant between examples and problems.

Calculate the recognition value of the equipment.

Prepare the amortization table for the note.

$\backslash$table$[[,$Payment,Interest,$\backslash$table$[[$Reduction in$],[$Liability$]],$Balance$],[\frac{1}{1}\frac{?}{20}1,,,,],[\frac{12}{31}\frac{?}{20}1,,,,],[\frac{12}{31}\frac{?}{20}2,,,,],[\frac{12}{31}\frac{?}{20}3,,,,],[\frac{12}{31}\frac{?}{20}4,,,,],[\frac{12}{31}\frac{?}{20}5,,,,]]$

Prepare the journal entries to record the purchase and the next two payments.

December $31,20$x$1$

$\backslash$table$[[,,],[,,],[,,]]$

December $31,20x^2$

$\backslash$table$[[,,],[,,],[,,]]$

$13$