On September $1,2023,$ Sheridan Ltd$.$ purchased equipment for $$25,800$ by signing a two$-$year note payable with a face value of $$25,800$ due on September $1,2025.$ The going rate of interest for this level of risk was $6\%.$ The company has a December $31$ year end. $($The tables in this problem are to be used as a reference for this problem.$)$

Click here to view Table A$\mathrm{.}2-$ PRESENT VALUE OF $1-($PRESENT VALUE OF A SINGLE SUM$)$ Click here to view Table A$\mathrm{.}4-$ PRESENT VALUE OF AN ORDINARY ANNUITY OF $1$

$($a$)$

Your answer is correct.

Calculate the cost of the equipment, where necessary using any of the three methods $($tables$,$ financial calculator, or Excel$),$ assuming the note is as follows: $($Round factor values to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answers to O decimal places, e$.$g$.5,275.)$

An $6$ interest$-$bearing note, with interest due each September $1.$

A $2\%$ interest$-$bearing note, with interest due each September $1.$

A non$-$interest$-$bearing note.

$ a$)$ Record all journal entries from September $1,2023,$ to September $1,2025,$ for a $2\%$ interest$-$bearing note, with interest due each September $1.$ Ignore depreciation of the equipment. $($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 O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries. Round answers to O decimal places, e$.$g$.5,275.)$