At January 1, 2016, Brant Cargo acquired equipment by issuing a four-year, $225,000 (payable at maturity), 6% note. The market rate of interest for notes of similar risk is 12%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:

1. to 3.

Prepare the necessary journal entries for Brant Cargo. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Record the purchase of equipment. (01/01/2016) Record the interest expense. (12/31/2016) Record the interest expense. (12/31/2017)