notes payable

Problem 3. On January 1, 2011, an entity acquired an equipment for 3,000,000. The entity paid 300,000 down and signed a noninterest bearing note for the balance which is due after three years on January 1, 2014. The prevailing interest rate is 10%. The present value of 1 for 3 periods is .7513.

Required 1 Prepare the entries for 2011 and 2012.

Required 2 Prepare the amortization table.