On January 1, 2020, Hockey Inc. acquired equipment by signing a 4% two-year note payable for $40,000. The terms of the loan require the following payments: December 31, 2020: $20,000 in principal and $1,600 in interest December 31, 2021: $20,000 in principal and $800 in interest Hockey Inc's cost of borrowing is 10%. You may use some of the PV factors below. Rounded PV factors n = number of periods, I = interest rate i=.04 15.10 Present value, single amount n = 1 0.96 0.91 Present value, single amount n = 2 0.92 0.83 Present value, ordinary annuity n = 2 1.88 1.74 Calculate the cost of the equipment and the present value of the note payable on January 1, 2020. You do not have to prepare a journal entry. (12 marks) Prepare a journal entry (or entries) in proper format for the principal payment and interest expense for the year ended December 31, 2020. The company uses the effective interest method for amortizing notes. You do not need to provide explanations for journal entries. (10 marks) Please label your calculations. On January 1, 2020, Hockey Inc. acquired equipment by signing a 4% two-year note payable for $40,000. The terms of the loan require the following payments: December 31, 2020: $20,000 in principal and $1,600 in interest December 31, 2021: $20,000 in principal and $800 in interest Hockey Inc's cost of borrowing is 10%. You may use some of the PV factors below. Rounded PV factors n = number of periods, I = interest rate i=.04 15.10 Present value, single amount n = 1 0.96 0.91 Present value, single amount n = 2 0.92 0.83 Present value, ordinary annuity n = 2 1.88 1.74 Calculate the cost of the equipment and the present value of the note payable on January 1, 2020. You do not have to prepare a journal entry. (12 marks) Prepare a journal entry (or entries) in proper format for the principal payment and interest expense for the year ended December 31, 2020. The company uses the effective interest method for amortizing notes. You do not need to provide explanations for journal entries. (10 marks) Please label your calculations