For any computations please show how you arrived at the answer. This will help me greatly with understanding the process as well as how the journal entries should look. Thank you!

2. On June 1, 2020, Cascade Company purchased equipment from Olympia Corporation Cascade issued a $28,000, 4-year, zero-interest- bearing note to Olympia for the new equipment. Cascade will pay off the note in four equal installments of $7,000 due at the end of each of the next 4 years. At the date of the transaction, the prevailing market rate of interest for obligations of this nature was 8%. Freight costs of $425 and installation costs of $500 were incurred in completing this transaction. Prepare the journal entry for the purchase of the equipment by Cascade. es