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On January 1, 2018, Byner Company purchased a used tractor. Byner paid $7,000 down and signed a noninterestbearing note requiring $36,000 to be paid on

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On January 1, 2018, Byner Company purchased a used tractor. Byner paid $7,000 down and signed a noninterestbearing note requiring $36,000 to be paid on December 31, 2020. The fair value of the tractor is not determinable. An interest rate of10% properly reflects the time value of money for this type of loan agreement. The company's fiscal year-end is December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare thejournal entry to record the acquisition of the tractor. 2. How much interest expense will the company include in its 2018 and 2019 income statements for this note? 3. What is the amount of the liability the company will report in its 2018 and 2019 balance sheets for this note? Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Prepare the journal entry to record the acquisition of the tractor. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollars.) View transaction list Journal entry worksheet Record the acquisition of the tractor. On January 1, 2018, Byner Company purchased a used tractor. Byner paid $7,000 down and signed a noninterestbearing note requiring $36,000 to be paid on December 31, 2020. The fair value of the tractor is not determinable. An interest rate of 10% properly reflects the time value of money for this type of loan agreement. The company's fiscal year-end is December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare thejournal entry to record the acquisition of the tractor. 2. How much interest expense will the company include in its 2018 and 2019 income statements for this note? 3. What is the amount of the liability the company will report in its 2018 and 2019 balance sheets for this note? Complete this question by entering your answers in the tabs below. Req 2 and 3 How much interest expense will the company include in the income statements and the liability the company will report in the balance sheets for this note for 2018 and 2019? (Do not round intermediate calculations. Round your answers to the nearest whole dollars.)

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