Prepare the journal entry at the end of the first year to record the payment and interest, assuming that the company employs the effective$-$interest method. $($Round answers to $0$ decimal places, e$.$g$.5,275.$ Credit account titles are automatically indented when 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. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

Equipment

Discount on Notes Payable

Notes Payable

Swifty Inc. has decided to purchase equipment from Central Michigan Industries on January $2,2025,$ to expand its production capacity to meet customers' demand for its.product. Swifty issues an $$560,000,5-$year, zero$-$interest$-$bearing note to Central Michigan for the new equipment when the prevailing market rate of interest for obligations of this nature is $12\%.$ The company will pay off the note in five $$112,000$ installments due at the end of each year over the life of the note.