On November 30, 2011, Sterling Transport signed a 5?year installment note in the amount of $50,000 in conjunction with the purchase of a motor coach. This note is payable in equal monthly installments of $1,112, which include interest computed at an annual rate of 12%. The first monthly payment is made on December 31, 2001. This note is fully amortizing over 60 months.
a. Prepare the company's journal entry to record the notes issuance
b. Prepare the journal entries to record the first and second installment payments.