6) On January 1, 2018, Nunez Manufacturers purchases equipment for $100,000, paying $30,000 in cash and signing a 10-year mortgage for $70,000 at 8% annual interest. (4pts)

1. Prepare the journal entry to record the acquisition of the equipment.
2. How much interest expense will they pay at the end of the first year?

Answer:

1.

2.______________ ____