Exercise 10-14 Marin Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2017, to expand its production capacity to meet customers' demand for its product. Marin issues an) $1,200,000, 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 10%. The company will pay off the note in five $240,000 installments due at the end of each year over the life of the note. CALCULATOR PRINT VERSION ILACI Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to decimal places, .0. 5,275. Credit account titles automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the accountitles and enter for the amounts.) Account Titles and Explanation Debit Credit Equipment Discount on Notes Payable Notes Payable 1200000 SHOW LIST OF ACCOUNT 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 decimal plac c.0.5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Intry" for the account les a enter o for the amounts.) Account Tities and Explanation Debit Credit SHOW LIST OF ACCOUNTS Prepare the journal entry at the end of the second year to record the payment and interest (Round answers to deal places, s. 5275. Cred trofe indented when amount is entered. Do not indent manually. If no entry is required, select "Me Entry for the countries and enter for the amounts.) Account Titles and Explanation Debu Credit SHOW LIST OF ACCOUNTS Assuming that the equipment had a 10-year life and no salvage value, prepare the journal entry necessary to record depreciation in the first year (Straight-line depreciation is employed.) (Hound answers to decimal places, c. 5.375. Credit account titles are automatically indented when amount is entered. Do not inden manually. If entry is required select "No Entry for the account titles and enter for the amounts) Account Titles and Explanation Debut Credit Click if you would like to Show Work for this questions on Show.ark