South Company, a public company, sells large construction equipment. On $1$ January $20$X$5,$ the company sold North Company a machine at a quoted price of $$188,000.$ South collected $$74,000$ cash and received a two$-$year note payable for the balance.

Required:

$1.$ Give South$$s required entries for the two years, assuming an interest$-$bearing note, face value $$114,000(8\%$ interest, simple interest, payable every $31$ December and $8\%$ market rate$).($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

$2.$ Assume that the market interest rate is still $8\%.$ Give South$$s required entries for the two years, assuming a $2\%$ interest$-$bearing note, face value $$114,000.$ Prepare the entries based on the gross basis. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

$3.$ Compare the interest revenue and sales revenue under requirements $1$ and $2.$

$4.$ Repeat requirement two above. Assume South is a private company that uses ASPE and has decided to use straight$-$line amortization. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$