Blossominc decided to purchase equipment from Central Ontario Industries on January 2, 2020, to expand its production capacity to meet customers' demand for its product. Blossom issued a $855.000, 3 year, non-interest-bearing note to Central Ontario for the new equipment when the prevailing market interest rate for obligations of this nature was 12%. The company will pay off the note in 3 $285.000 instalments due at the end of each year of the note's life. The tables in this problem are to be used as a reference for this problem.) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Prepare the journal entry at the date of purchase. Calculate the purchase price using any of the three methods (tables, financial calculator, or Excel). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round factor values to decimal places, eg. 1.25124 and final answers to decimal places, 23. 5.275.) Date Account Titles and Explanation Debit Credit Jan. 2 Equipment 2020 Notes Payable Prepare the journal entries at the end of the first year to record the payment of principal and interest, assuming that the company uses the effective interest method. (Credit account titles are automatically indented when the amount is entered. Do not Indent manually . If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round final answers to decimal places, es. 5.275.) Date Account Titles and Explanation Credit Dec 31, Debit 2020 4 Jan. 2 2021 Notes Payable Interest Expense Prepare the journal entries at the end of the second year to record the payment of principal and interest. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts Round final answers to decimat places, es. 5.275.) Date Account Titles and Explanation Debit Dec. 31, Credit 2021 Jan. 2 2022 Notes Payable Interest Expense Cash Assuming that the equipment has an 7 year life and no residual value, prepare the journal entry that is needed to record depreciation in the first year. The straight line method is used.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round final answers to decimal places, es 5,275) Date Account Tities and Explanation Debit Credit Dec 31, Depreciation Experte 2020 Accumulated Depreciation Equipment 1012503 1012503 V.1 Present Value of 1 (11) periods 2% 212% 3% 4% 5% 6% 8% 9% 10% 11% 12N 15% 1 0.98039 0.97561 0.97087 0.96156 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.86957 2 0.96117 0.95181 0.94260 0.92456 0.90703 0.89000 0.87344 0.85734 0.84168 0.82645 0.81162 0.79719 0.75614 3 0.94232 0.92860 0.91514 0.88900 0.86384 0.83962 0.81630 0.79383 0.77218 0.75132 0.73119 0.71178 0.65752 4 0.99385 0.90595 0.88849 0.85480 0.899970 0.79209 0.76990 0.73503 0.70843 0.68301 0.65873 0.63552 0.57175 5 0.00583 0.88385 0.86061 0.89193 0.78353 0.74726 0.71299 0.68058 0.64993 0.62092 0.59345 0.56743 0.49718 6 0.88797 0.86230 0.83748 0.79031 0.74622 0.70496 0.66634 0.63017 0,59627 0.56447 0-53464 0.50663 0.43233 7 0.87056 0.84127 0.81309 0.75992 0.71068 0.66506 0,62275 0.58349 0.54703 0.51346 0.48166 0.45235 0.37594 8 0.85349 0.82075 0.78941 0.73069 0.67684 0.63741 0.58201 0.54027 0.50187 0.46651 0.43393 0.40388 0.32690 0.83676 0.80073 0.76642 0.70259 061461 0.59190 0.54393 0.30095 0.46043 0.42410 0.39092 0.36061 0.28426 10 0.89035 0.78120 0.74409 0.67556 0.61391 055839 0,50835 0.46319 0.42241 0.38554 0.35218 0.32197 0.24719 0.80426 0.76214 0.72242 0.64958 0.58468 0.52679 0.47509 0.42888 0.38753 0.35049 0.31728 0.98748 0.21494 0.78849 0.74356 0.70138 0.69460 0556049699 044401 0.397 035554 0.31863 0.28584 0.95668 0.18691 13 0.77303 0.79542 0.68095 0.60057 0153032 046884 0.41496 0.70 0.32618 0.28066 0.95751 0.99917 0.16253 14 0.75788 0.70773 0.66112 0.57748 0.50507 0:44230 0.38782 0.34046 0.99925 0.26333 0.23199 0.20462 0.14133 15 0.74301 0.69047 0,64186 0.55526 0.48102 0.41222 0.36245 0.31524 0.27454 0.23939 0.20900 0.182700,19089 10 0.79845 0.67362 0.62317 053391 0.45811 039365 033873 0.29189 0.25187 0.21763 098820 0.16312 0.10687 17 0.71416 0.65720 0.60502 0.51337 0.43630 0.37136 0.31657 0.27027 0.33107 0.19785 0.16963 0.14564 0.09293 18 0.70016 0.64117 0.58739 0.49363 0.41552 035034 0129586 0.25025 0.21199 0.17986 0.15289 0.13001 0.08081 19 0.68643 0,62553 0.57029 047464 0.39573 0.33051 0.27651 0.23171 0.1919 0.16351 0.13768 0.11611 0.07027 20 0.67290.61037 0,55368 0.45639 0.32689 0.31:30 0.258,42 0.21455 0.17843 0.14864 0.12.403 0.10367 0.00110 Wiley.com's content%2Fkseso Intermediate Accounting 12C%2Febook%2Fepub/6279781119496 Present Value of an Annuity of 1 PV = 1 - 1 (1+1) 1 (n) Periods 1 15% 2 3 4 5 7 8 9 26 212% 3% 5% 7% 8% 9% 10% 11% 12% 0.98039 0.97561 0.97087 0.96154 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.86957 1.94156 1.92742 1.91347 1.88609 1.85941 1.83339 1.80802 1.78326 1.75911 1.73554 1.71252 1.09005 1.62571 2.88388 2.85602 2,82861 2.77509 2.72325 2.67301 2.62432 257710 2.53130 2.48685 2.44371 2.40183 2.28323 3.807733-761973-21710 3.62990 3.54595 3-46511 3-38721 3-31213 3.23972 3.16986 3.10245 3.03735 2.85498 4.71346 4.64583 457971 4.45182 432948 4.21236 4.10020 3.99271 3.88965 3.79079 3.69590 3.60478 3:35216 5.60143 5.508135-41719 5.24214 5.07569 4.91732 4.76654 4.62288448592 4.35526 423054 4.11141 3.78448 6,47199 634939 6.23028 6.00205 5.786375.582385-38929 5.20637 5.03295 4.86842 4.71220 4-56376 4.16042 732548 7.170147.01969 6.73274 6.46321 6.20979 5.97130 5746645-53482 5-334935.146124.96764 4.48732 8.16924 7.97087786117435337.10782 6.801696,51523 6.24689 5.995255-75902553705 532825 4.77158 8.98259 8.75206 8.53020 8.110909.721737.36009 7.02358 6.71008 6.417666.144575.88923 5.65022 5.01877 9.78685 9.51421 9.25262 8.76048 8.306517.88687 7.49867 7.13896 6.80519 6,495066 20652 5.93770 5.23371 1057534 10.25776 9.95400 0.38507 8.86325 838384 794269 253608 7.16073 6.81369 6.49236 6.19437 5.42062 11.34837 10.98319 10,63496 9.98565 939352 8.85268 835765 7.90378 748690710336 6.74987 6.42355558315 12.10635 11.69091 11.29607 10.56312 9.89864 9.294988.74547 8.94424 7.8615736669 6.981876.62817 5.72448 12.84926 12,38138 11.93794 11.11839 10.370669.71225 9.10291 8.55048 8.06060 7.60608 7.190876,81086 5.84737 13.577 13.05500 12.56110 1165230 10.83777 10:105909.446658.85137 8.31256789371737916 6,97399 5.95424 14.29187 13.71220 13.16612 12.16567 11.27402 10.47726 9.76322 9.12164 8.54363 8,02155 751879 7.11963 6,04716 14.00203 14.35336 13.75351 19.65930 11.68959 10.32760 10.05900 9.37189 8.75508.2014170109 7.24907 6.19797 15.67846 14.97889 1432330 13.13394 19.08532 11.15812 10:33560 9.60360 8.05012 8.160 10 11 12 13 14 15 16 17 18 19 AD