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Windsor Inc. has decided to purchase equipment from Central industries on January 2, 2022, to expand its production capacity to meet customers' demand for its

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Windsor Inc. has decided to purchase equipment from Central industries on January 2, 2022, to expand its production capacity to meet customers' demand for its product. Windsor issues a $828.000,5-year, zero-interest-bearing note to Central for the new equipment when the prevailing market rate of interest for obligations of this nature is 11%. The company will pay otf the note in five $165,600 instaliments due at the end of each year over the life of the note. (a) Your answer is correct. Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, es, 1.25124 and final answers to 0 decimol places, eg 5,275. Credit occount titles are outomoticollyindented when amount is entered. Do not indent manualix. If no entry is realires. select "No Entry" for the account titles and enter Of for the omounts.) Prepare the journal entry at the date of purchase. (Round foctor values to 5 decimal places, eg. 1.25124 and firial ansiyers to o declmal places, eg. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent mantially if no entry is required. select "No Entry" for the account titles and enter O for the amounts.) Prepare the journal entry at the end of the first year to record the payment and interest, assuming that the company ermploys the effective-interest method. (Round answers to 0 decimal ploces, eg. 5,275 . Credit account tities are autornaticallyindented when womount is entered, Do not indent manually. If no entry is required, select "No Entry" for the account tities and enter Ofor the amounts) Prepare the journal entry at the end of the sccond year to record the paymert and interest. Found anowes to 0 decimal piaces, ez 5,275. Crodit account tities are automotically indented wher ainount is entered, Do not indent manuoly if no entry is requirat, select To. Entry" for the occount bltes and enter O for the amounts

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