May $1,2024-$ SOF received a bank loan of $$90,000$ from Conexus Credit Union.

Jun $1,2024-$ SOF spent $$100,000$ to purchase a forklift $($POS$)$ for a total cost of

$$100,000.$ The forklift will be used to move groceries throughout the store. The forklift

will have a $10-$year useful life.

The interest rate on the loan from Conexus is $6\mathrm{.}0\%($compounded only on the loan

principle outstanding$).$ The loan is for $3$ years and will be paid back evenly over $3$ years.

As part of the financing SOF only needs to make the required loan payments each year on

Apr $30.$ Each loan payment will be for $$30,000$ plus any interest owing.

Required:

a$)$ Journal Entries:

$$ Prepare the required journal entries for each of the following dates relating to both

the asset and the loan:

$$ May $1,2024$

$$ Jun $1,2024$

$$ Dec $31,2024$

$$ Apr $30,2025$

$$ Dec $31,2025$

$$ Apr $30,2026$

$$ Dec $31,2026$

$$ Apr $30,2027$

You must show all supporting calculations.

b$)$ Financial Statements:

$$ What will the NBV of the equipment be on the Dec $31,2031$ statement of financial position?