SPI-W Inc. has the following transactions occurred during 2021: a. The company borrowed $500,000 on January 1 to finance the purchase of new equipment. The terms for the company are a six month note, 10% interest bearing. Prepare a journal entry for the borrowing and repayment transactions. (4 marks) b. SPI-W Inc. sales are poor in December due to the holidays and the company has decided this year to try to boost sales and offer discount on try-outs. Normal costs for a try-out is $5,000. The company has decided to offer the following incentive in which they can get two try-outs for the price of one if the customer pays $5,000 in advance. Prepare a journal entry for the customer's prepayment of $5,000, and if the company did one try-out. (4 marks) a C. SPI-W Inc. is named in lawsuit. The attorney has written a letter to the company stating its extremely likely that SPI-W will lose the lawsuit and be forced to pay $125,000 in damages. Prepare the journal entry if necessary if not state, No. The account that would be used, if necessary is Lawsuits Payable. (2 marks) Date Account and Explanation Debit Credit