You are to record journal entries in the grid below for each of a) and b) below. There are extra rows in the grid. Debits must come before credits. You are not required to provide explanations, but you should show calculations. a) On January 1, year one Toucan purchased a specially designed piece of equipment, by issuing a four-year $100,000 note when the prevailing market interest rate for an obligation of this nature was 8%. Toucan will pay off the note in four $25,000 instalments at the end of each year. Toucan uses the effective interest method for amortizing notes. It uses straight-line depreciation for the equipment which has an estimated useful life of six years and no residual value. Prepare journal entries for: January 1, year one: acquisition of the capital asset, equipment December 31, year one: payment of principal, interest expense, depreciation expense Rounded PV factors n = number of periods, I = interest rate 19.08 Present value, single amount n = 4 0.74 Present value, ordinary annuity n = 4 3.31 b) On January 1 year end, Toucan received $10,000 for selling a truck with an original cost of $40,000 and accumulated depreciation of $32,000, You are to record journal entries in the grid below for each of a) and b) below. There are extra rows in the grid. Debits must come before credits. You are not required to provide explanations, but you should show calculations. a) On January 1, year one Toucan purchased a specially designed piece of equipment, by issuing a four-year $100,000 note when the prevailing market interest rate for an obligation of this nature was 8%. Toucan will pay off the note in four $25,000 instalments at the end of each year. Toucan uses the effective interest method for amortizing notes. It uses straight-line depreciation for the equipment which has an estimated useful life of six years and no residual value. Prepare journal entries for: January 1, year one: acquisition of the capital asset, equipment December 31, year one: payment of principal, interest expense, depreciation expense Rounded PV factors n = number of periods, I = interest rate 19.08 Present value, single amount n = 4 0.74 Present value, ordinary annuity n = 4 3.31 b) On January 1 year end, Toucan received $10,000 for selling a truck with an original cost of $40,000 and accumulated depreciation of $32,000