4 2 points On January 1, 2024, Byner Company purchased a used tractor. Byner paid $2,000 down and signed a noninterest-bearing note requiring $29,000 to be paid on December 31, 2026. The fair value of the tractor is not determinable. An interest rate of 10% properly reflects the time value of money for this type of loan agreement. The company's fiscal year-end is December 31. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: 1. Prepare the journal entry to record the acquisition of the tractor. 2. How much interest expense will the company include in its 2024 and 2025 income statements for this note? 3. What is the amount of the liability the company will report in its 2024 and 2025 balance sheets for this note? > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Prepare the journal entry to record the acquisition of the tractor. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollars. No Transaction 1 1 Tractor General Journal Discount on notes payable Cash Notes payable Req 1 Req 2 and 3 > Debit Credit 23,788 5,212 2,000 29,000 6 2 points 1. The equipment was purchased on account for $27,000. Credit terms were 2/10, 1/30. Payment was made within the discount period and the company records the purchases of equipment net of discounts. 2. Connors gave the seller a noninterest-bearing note. The note required payment of $29,000 one year from date of purchase. The fair value of the equipment is not determinable. An interest rate of 12% properly reflects the time value of money in this situation. 3. Connors traded in old equipment that had a book value of $7,000 (original cost of $16,000 and accumulated depreciation of $9,000) and paid cash of $24,000. The old equipment had a fair value of $3,300 on the date of the exchange. The exchange has commercial substance. 4. Connors issued 1,000 shares of its no-par common stock in exchange for the equipment. The market value of the common stock was not determinable. The equipment could have been purchased for $26,000 in cash. Required: For each of the above situations, prepare the journal entry required to record the acquisition of the equipment. Note: Use tables, Excel, or a financial calculator. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1 No Answer is not complete. Transaction General Journal Debit Credit 1 Equipment new 27,000 Accounts payable 27,000 2 2 Equipment - new Notes payable 3 3 Equipment - new Loss on exchange of assets Accumulated depreciation Cash Equipment - old 4 4 Equipment new Common stock 27,000 27,000