Wildhorse Inc. decided to purchase equipment from Central Ontario Industries on January $2,2023,$ to expand its production capacity

to meet customers' demand for its product. Wildhorse issued a $$913,000,5-$year, non$-$interest$-$bearing note to Central Ontario for

the new equipment when the prevailing market interest rate for obligations of this nature was $12\%.$ The company will pay off the note

in $5$$$182,600$ 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 Table A$\mathrm{.}4-$ PRESENT VALUE OF AN ORDINARY ANNUITY OF $1$

$($a$)$

Your answer is correct.

Prepare the journal entry at the date of purchase. Calculate the purchase price using any of the three methods $($tables$,$ financial

calculator, or 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 $0$ for the amounts. List debit entry before credit entry. Round factor values to $5$

decimal places, e$.$g$.1\mathrm{.}25124$ and final answers to $0$ decimal places, e$.$g$.5,275.)$

Account Titles and Explanation

Debit

Credit

Equipment

Notes Payable

eTextbook and Media

List of Accounts

Question Part Score

$($b$)$

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 $0$ for the amounts. List all debit entries before credit

entries. Round answers to $0$ decimal places, e$.$g$.5,275.)$

Answer part b$)$ please