Recording Purchase of Equipment through Debt and Equity On January 1, 2020, Sidelines Company purchases equipment with an estimated 6-year useful life by making a $5.600 cash payment and issuing a noninterset-bearing note for $19.200 due in two years. The fairwave of the the equipment is unknown. An 11 annual interest rate is typical of this transaction. The company uses the effective interest method to amortize interest expense and the straight line method to estimate depreciation expense, a. Prepare the entry to record the purchase on January 1, 2020 Prepare the entry on December 31, 2020, to record (1)interest expense and (2) depreciation expense. Indicate the balance sheet presentation related to this transaction as of December 25, 2020 Prepare the entry on December 31, 2021. to record (1) interest expense and payment of the note and 12) depreciation expense e Assume instead that Sidelines exchanged 400 shares of its own $10 par value common stock along with $5.600 cash for the equipment. At the date of the exchange the stock was trading on the market at $40 per share. Prepare the entry to record the purchase of equipment Purchase of Equipment with Dett Purchase of Equipment through Equity 2. Prepare the entry to record the purchase on January 1, 2020 Dat Account Name Dr. Cr. n. 1.2020 Equipment Discount on Note Payable Cash Note Payable Prepare the entry on December 31, 2020, to record interest expense and (21 depreciation expense. Date Account Name Dr. Dec 11, 2070 Interest Esperse Discount on Note Payable + To content Dec 31, 2000 Deprecation Expense Accumulated Depreciation = To se degradatim EMMAMUN Indicate the balance sheet presentation related to this transaction as of December 31, 2020 Balance Sheet, Dec 31 2020 Assets: Equipment, net 1 Liabilities: Note payable net $ d. Prepare the entry on December 31, 2021. to record (1) interest expense and payment of the note and (2) depreciation expense. Date Account Name Dr. Cr. Dec 31, 2021 Interest Expense Discount on Note Payable To record interest Dec 31, 2021 Note Payable Cash To record payment on note. Dec 31, 2021 Depreciation Expense Equipment To record depreciation . Assume instead thout Sidelines exchanged 400 shares of bonn 510 par value common stock along with $5.000 cash for the equipment. At the date of the exchange the stock estrading on the market at $40 per share. Prepare the entry to record the purchase of equipment Note: Record credit accounts in alphabetical ordering the fastester of the account name Date Account Name Dr. GE. + . 8 CE