On September 1, 2020, Sandhill Ltd. purchased equipment for $34,200 by signing a two-year note payable with a face value of $34,200 due on September 1, 2022. The going rate of interest for this level of risk was 7%. 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. (a) Your answer is correct. 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, eg. 1.25124 and final answers to 0 decimal places, e.g. 5,275.) 1. An 7% 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 7% interest-bearing note 34200 2. A 2% interest-bearing note $ 31108 3. A non-interest-bearing note $ 29872 e Textbook and Media List of Accounts Attempts: 2 of 3 used 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 Ofor the amounts. Round answer to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 120 Equipment 31108 Notes Payable 31108 31/20 Interest Expense Notes Payable Interest Payable 9/1/21 Interest Payable Interest Expense Notes Payable Cash 31/21 Interest Expense Notes Payable Interest Payable 9/1/22 Interest Payable Interest Expense Notes Payable Cash