Company Y purchase equipment for $990,000 on July 1, 2023, and the company is expected to pay the full amount on June 30, 2026. The equipment vendor will charge the 5% interest to be paid on June 30 of each year however the market interest rate at that time was 8%. Based on the information provided answer the following: 1. The amount of liability reported in the balance sheet on June 30, 2025: 2. The amount of interest expense to be reported on the income statement on June 30, 2026: 3. Pass the journal entry to record the interest expense on June 30, 2025