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On January 1, 2024, Byner Company purchased a used tractor. Byner paid $6,000 down and signed a noninterest-bearing note requiring $38,000 to be paid on

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On January 1, 2024, Byner Company purchased a used tractor. Byner paid $6,000 down and signed a noninterest-bearing note requiring $38,000 to be paid on December 31,2026 . The fair value of the tractor is not determinable. An interest rate of 10% propt reflects the time value of money for this type of loan agreement. The company's fiscal year-end is December 31 . Note: Use tables, Excel, or a financial calculator. (FV of \$1. PV of \$1. EVA of \$1. PVA of \$1. EVAD of \$1 and PVAD of \$1) Required: 1. Prepare the journal entry to record the acquisition of the tractor. 2. How much interest expense will the company include in its 2024 and 2025 income statements for this note? 3. What is the amount of the liability the company will report in its 2024 and 2025 balance sheets for this note? Complete this question by entering your answers in the tabs below. Prepare the journal entry to record the acquisition of the tractor. Note: 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. On January 1, 2024, Byner Company purchased a used tractor. Byner paid $6,000 down and signed a non requiring $38,000 to be paid on December 31,2026 . The fair value of the tractor is not determinable. An in reflects the time value of money for this type of loan agreement. The company's fiscal year-end is Decembe Note: Use tables, Excel, or a financial calculator. (FV of \$1. PV of \$1. FVA of \$1. PVA of \$1. FVAD of \$1 and 1 - Required: 1. Prepare the journal entry to record the acquisition of the tractor. 2. How much interest expense will the company include in its 2024 and 2025 income statements for this 3. What is the amount of the liability the company will report in its 2024 and 2025 balance sheets for this Complete this question by entering your answers in the tabs below. 2. How much interest expense will the company include in its 2024 and 2025 income statements for this note? 3. What is the amount of the liability the company will report in its 2024 and 2025 balance sheets for this note? Note: Do not round intermediate calculations. Round your answers to the nearest whole dollars

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