Pockets lent $$31,000$ to Lego Construction on January $1,2024.$ Lego signed a three$-$year, $5\%$ installment note to be paid in three equal payments at the end of each year.

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ EVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Required:

Prepare the Journal entry on January $1,2024,$ for Pockets' lending the funds.

Calculate the amount of one installment payment.

Prepare an amortization schedule for the three$-$year term of the installment note.

Prepare Pockets' journal entry for the first installment payment on December $31,2024.$

Prepare Pockets' journal entry for the third installment payment on December $31,2026.$

Complete this question by entering your answers in the tabs below.

Req $1$

Req $4$ and $5$

Prepare the journal entry on January $1,2024,$ for Pockets' lending the funds.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

$1$

Record the funds lent by Pocket.

Note: Enter debits before credits.