Lathrop Inc. purchased equipment on January 1 of Year 1 for $150,000 cash plus a note payable. The fair value of the equipment on January 1 of Year 1 is $542.666. The company uses the effective interest method to amortize discounts and premiums. The market rate is 6% Required Record the entries on January 1 of Year 1 and December 31 of each year-end for the following three separate scenarios for the note payable a. The principal of $400,000 is due on December 31 of Year 2, and the note states 5% interest payable each December 31 over the two-year period b. The face value of the note payable is $441,200 and is due on December 31 of Year 2. The note is structured as a zero-interest-bearing note payable over a two-year period. c. The note is due on December 31 of Year 3 with equal payments of $146,000 due on each December 31 over the term of the note. The note will be fully paid upon maturity. Case One Case Two Case Three Note: Round your answers to the nearest whole dollar. Date Jan. 1 Year 1 Equipment Account Name Discount on Note Payable Cath Note Payable To record notice Dec. 31, Year 1 interest Expense Discount on Note Payable Cash To record interest.expert Dec 31, Year 2 Interest Experne Discount on Nose Payable Cash To second eterest one Dec. 31, war 2 Dr. Cr v 271,333 3667 0 0 75.000 200.000 11,780 0 O 1780 0 10,000 0 3 0 3 0 0 0 Y Turecord eingebent of the ne //.conlethodists - K