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Exercise 2 Bowden Company is provided a grant by the local government to purchase land for a building site. Then grant is a zero-interest-bearing note for 4 years. The note is issued on January 2, 2019, for 3 milion payable on January 2, 2023. Bowden's incremental borrowing rate is 6%. The land is not purchased until July 15, 2019 Instructions (a) Prepare the journal entry(ies) to record the grant and note payable on January 2, 2019. (b) Determine the amount of interest expense and grant revenue to be reported on December 31, 2019