Buying a delivery van with a bank loan

Transaction

A company buys a delivery van for $32,000.00. It signs a three-year note payable with its bank for $25,000.00, with the whole principal due at maturity; the bank pays the loan directly to the dealer. The company pays the rest by check.

Assumptions: Sales tax and registration fees are ignored. Interest is paid monthly and recorded when due, not at purchase.