Hay w Problem 7-31A (Algo) Accounting for an installment note payable LO 7.5 The following transactions apply to Pecan Co for Year 1, its first year of operations 1. Received $36,000 cash in exchange for issuance of common stock 2. Secured a $118.000 ten-year installment loan from State Bank The interest rate is 5 percent and annual payments are $15,282 3. Purchased land for $24.000 4. Provided services for $80,000 5. Paid other operating expenses of $32,000 6. Pald the annual payment on the loan Required a. Organize the transaction data in accounts under an accounting equation b. Prepare an income statement and balance sheet for Year 1 c. What is the interest expense for Year 2? Year 3? Complete this question by entering your answers in the tabs below. Reg Bing Stmt Reg A Red B Bal Sheet Req Req A Reg B Inc Req B Bal Stmt Sheet Reqc Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus in. If there is no effect on the Account Titles for Retained Earnings, leave the cell blank. Not all cells will require entry) PECAN COMPANY Effect of Events on the Accounting Equation Assets Llabilities: Stockholders' Equity Event Account Titles for Retained No. Note Common Retained Cash Land Earnings Payable Stock Earnings Year 1 1 2 3 4 5 6 Bal Complete this question by entering your answers in the tabs below. Req A Req B Inc Stmt Req B Bal Sheet Reg C Prepare an income statement for Year 1. PECAN COMPANY Income Statement For the Year Ended December 31, Year 1 Non-operating items Prepare a balance sheet for Year 1. PECAN COMPANY Balance Sheet As of December 31, Year 1 Assets Total assets Liabilities Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity n of 4 TH Complete this question by entering your answers in the tabs below. Reg A Req B Inc Req B Bal Stmt Sheet Reqc What is the interest expense for Year 27 Year 3? (Round your answers to the nearest whole dollar amount.) Year 2 Year 3 Interest expense