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On January 1, 2021, Byner Company purchased a used tractor. Byner paid $5,000 down and signed a noninterest-bearing note requiring $37,000 to be paid on

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On January 1, 2021, Byner Company purchased a used tractor. Byner paid $5,000 down and signed a noninterest-bearing note requiring $37,000 to be paid on December 31, 2023. The fair value of the tractor is not determinable. An Interest rate of 12% properly reflects the time value of money for this type of loan agreement. The company's fiscal year-end is December 31. (FV of S1, PV of Si, FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the journal entry to record the acquisition of the tractor 2. How much interest expense will the company include In Its 2021 and 2022 Income statements for this note? 3. What is the amount of the lability the company will report in its 2021 and 2022 balance sheets for this note? Complete this question by antering your answers in the tabs below. Req1 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 joumal 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. Note: Enter debits before credits General Journal Transaction 1 Debit Credit Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 Determine how much interest expense the company will include in the income statements and the amount of the liability the company will report in the balance sheets for this note for 2021 and 2022. (Do not round intermediate calculations. Round your answers to the nearest whole dollars.) 2021 2022 Interest expense Liability amount Reg1 Reg 2 da

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