On September 1, 2020, Crane Ltd. purchased equipment for $36,000 by signing a two-year note payable with a face value of $36,000 due on September 1, 2022. The going rate of interest for this level of risk was 8%. The company has a December 31 year end. (The tables in this problem are to be used as a reference for this problem.) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Calculate the cost of the equipment, where necessary using any of the three methods (tables, financial calculator, or Excel), assuming the note is as follows: (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275.) 1 An 8% interest-bearing note, with interest due each September 1. 2 A 2% interest-bearing note, with interest due each September 1. 3. A non-interest-bearing note. Cost of the Equipment 1 An 8% interest-bearing note $ 2. A 2% interest-bearing note $ 3. A non-interest-bearing note $ eTextbook and Media List of Accounts Record all journal entries from September 1, 2020, to September 1, 2022, for an 8% interest-bearing note, with interest due each September 1. Ignore depreciation of the equipment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date 9/1/20 12/31/20 9/1/21 12/31/21 9/1/22 9/1/21 9/1/22 Account Titles and Explanation Debit Credit Record all journal entries from September 1, 2020, to September 1, 2022, for a 2% interest-bearing note, with interest due each September 1. Ignore depreciation of the equipment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answer to O decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date 9/1/20 12/31/20 9/1/21 12/31/21 9/1/22 9/1/21 9/1/22 Account Titles and Explanation Debit Credit Record all journal entries from September 1, 2020, to September 1, 2022, for a non-interest-bearing note. Ignore depreciation of the equipment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answer to O decimal places, eg. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation 9/1/20 12/31/20 9/1/21 12/31/21 9/1/22 (To record interest expense) (To record note repayment) Debit Credit List of Accounts Accounts Payable Accounts Receivable Accumulated Depreciation Buildings Accumulated Depreciation Equipment Accumulated Depreciation-Leasehold Improvements Accumulated Depreciation - Machinery Accumulated Depreciation - Vehicles Advertising Expense Asset Retirement Obligation Buildings Cash Common Shares Contributed Surplus Contributed Surplus - Donated Capital Cost of Goods Sold Deferred Revenue - Government Grants Depreciation Expense Donation Revenue Equipment Finance Expense Finance Revenue Gain or Loss in Value of Investment Property Gain on Disposal of Building Gain on Disposal of Equipment Gain on Disposal of Machinery Gain on Disposal of Vehicles GST Payable GST Receivable Interest Expense Assistance Used Interest Income Interest Payable Interest Receivable Inventory Investment Property Land Land Improvements Loss on Disposal of Building Loss on Disposal of Equipment Loss on Disposal of Land Loss on Disposal of Machinery Loss on Disposal of Vehicles Machinery Repairs and Maintenance Expense Mineral Resources Mortgage Payable No Entry Notes Payable Notes Receivable Office Expense Owner's Drawings Prepaid Expenses Prepaid Insurance Profit on Construction Purchase Discounts Purchase Returns and Allowances Rent Expense Revaluation Gain or Loss Revaluation Surplus (OCI) Revenue-Government Grants Salaries and Wages Expense Salaries and Wages Payable Sales Revenue Service Revenue Supplies Supplies Expense Tenant Deposits Liability Vehicles