Assume that Polly's accounting year ends on December 31. Identify and analyze the effect of any necessary adjusting entries based on transactions below. Do not round intermediate calculations. If required, round your final answers to the nearest cent. Use full months instead of days when calculating interest expense. b. On May 1, land was purchased for $42, 400. A 10% down payment was made, and an 18-month, 9% note was signed for the remainder. Activity Operating Accounts Interest Payable Increase, Interest Expense Increase Statement(s) Balance Sheet and Income Statement How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign