Question 2 of 9 > -12 ILI Concord Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2020, to expand its production capacity to meet customers' demand for its product. Concord issues ain) $640.000, 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 tive $120.000 instaliments due at the end of each year over the life of the note (a) Prepare the journal entry at the date of purchase. (Round foctor values to decimal places 1.25124 and final nuwers to decimal places, s 5.275 Creditoccountles are automatically indented when amount is entered. Do not indent manually. If no entry is required select "No Entry for the accountities and enter for the amounts Account Titles and Explanation Debit Credit V 10:11 (b) 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 decimal places, eg 5,275. Credit accountities are automatically Indented when amount Is entered. Do not Indent manually. I no entry is required, select "No Entry for the account tities and enter for the amounts) Account Titles and Explanation Debit Credit e Textbook and Media 10:11 (c) Prepare the journal entry at the end of the second year to record the payment and interest. (Round answers to decimal places, 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 accountitles and enter for the amounts.) Account Titles and Explanation Debit Credit Textbook and Media 10:11 (d) Assuming that the equipment had a 10-year life and no salvage value prepare the journal entry necessary to record depreciation in the first year (Straight-line depreciation is employed.) (Round answers to decimal places, eg. 5-275. Credit account titles are automatically indented when amount is entered. Do not Indent manually. I no entry is required, select "No Entry for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit e Textbook and Media List of Accounts Attempts: 0 of 5used Submit An Sarator Later 10:11
