Questions Cullumber Inc. decided to purchase equipment from Central Ontario Industries on January 2, 2020, to expand its production capacity to meet customers' demand for its product. Cullumber issued a $857,000, 4 year, non-interest bearing note to Central Ontario for the new equipment when the prevailing market interest rate for obligations of this nature was 11%. The company will pay off the note in 4 $214,250 instalments due at the end of each year of the note's life. (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) Zl your answer has been saved and sent for grading. See Gradebook for score details. Prepare the journal entry at the date of purchase. Calculate the purchase price using any of the three methods (tables, financial calculator, of Excel). (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 factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit 664 700 Jan 2, 2020 Equipment Notes Payable 664700 Prepare the journal entries at the end of the first year to record the payment of principal and interest, assuming that the company uses the effective interest method. (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 final answers to O decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Dec 31, 2020 Jan. 2, 2021 Attempts: 0 of 1 used SUBMIT ANSWER Ne when you complete the bort above