Chippewas Inc. has decided to purchase equipment from Central Michigan Industries on January 2. 2017, to expand itsf production capacity to meet customers' demand for its product. Chippewas issues a(n) $800,000, 5-year, zero-interest bearing note to Central Michigan for the new equipment when the prevailing market rate of interest for obligations of this nature is 12%. The company will pay off the note in five $160,000 install ments due at the end of each year over the life of the note. Prepare the journal entry at the end of the first year to record the payment and interest, assuming that the company employs the effective-interest method. (Round answers to 0 decimal places, e.g. 5,275. Credit account tities are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.,) Account Titles and Explanation Notes Payable Interest Expense Debit Credit 160000 69212 Discount on Notes Rgyable 160000 Cash -69212 Prepare the journal entry at the end of the second year to record the payment and interest. (Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) DebitCredit Account Titles and Explanation 50843 Notes Payable 50843 Interest Expense 160000 Discount op Notes Payable 50843 Cash