I need help answering this question, Crane Inc. decided to purchase equipment from Central Ontario Industries on January 2, 2020, to expand its production capacity to meet customers demand for its product. Crane issued a $880,000, 4-year, noninterest-bearing note to Central Ontario for the new equipment when the prevailing market interest rate for obligations of this nature was 11%. The company will pay off the note in 4 $220,000 instalments due at the end of each year of the notes life. (The tables in this problem are to be used as a reference for this problem.)

Prepare the journal entry 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 o for the amounts. Round final answers to o decimal places, e.g. 5,275.) Debit Credit Date Account Titles and Explanation Dec. 31, 2021 Notes Payable Interest Expense Cash SHOW LIST OF ACCOUNTS LINK TO TEXT Assuming that the equipment has an 8-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 o for the amounts. Round final answers to o decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Depreciation Expense epreciation - Equipment44 SHOW LIST OF ACCOUNTS LINK TO TEXT