Larkspur Inc. has decided to purchase equipment from Central Michigan Industries on January $2,2020,$ ?to expand its productioncapacity to meet customers' demand for its product. Larkspur issues a$($n$)$ ?$$1,680,000,5-$year, zero$-$interest$-$bearing note to CentralMichigan for the new equipment when the prevailing market rate of interest for obligations of this nature is $12\%.$ ?The company willpay off the note in five $$336,000$ ?installments due at the end of each year over the life of the note

.$($a$)$Your answer has been saved. See score details after the due date.Prepare the journal entry at the date of purchase. $($Round factor values to $5$ ?decimal places, e$.$g$.1\mathrm{.}25124$ ?and final answers to $0$ ?decimalplaces, 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 $0$ ?for the amounts.$)$Account Titles and ExplanationEquipmentDiscount on Notes PayableNotes PayableeTextbook and MediaList of AccountsDebitCredit$1,211,206$
$($b$)$Prepare the journal entry at the end of the first year to record the payment and interest, assuming that the company employs theeffective$-$interest method. $($Round answers to $0$ ?decimal places, e$.$g$.5,275.$ ?Credit account titles are automatically indented when amountis entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ ?for the amounts.$)$Account Titles and ExplanationDebitCrediteTextbook and MediaList of Accounts

(b) 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 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.) Account Titles and Explanation eTextbook and Media List of Accounts Save for Later Debit Credit Attempts: 0 of 1 used Submit Answer