On September $1,2023,$ Wildhorse Ltd$.$ purchased equipment for $$32,100$ by signing a two$-$year note payable with a face value of $$32,100$ 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 $0$ decimal places, e$.$g$.5,275.)$

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

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

$3.$ A non$$interest$-$bearing note.

Cost of the Equipment

$1.$

An $6\%$ interest$-$bearing note

$enter a dollar amount rounded to $0$ decimal places

$32100$

Correct answer

$2.$

A $2\%$ interest$-$bearing note

$enter a dollar amount rounded to $0$ decimal places

$29746$

Correct answer

$3.$

A non$$interest$-$bearing note

$enter a dollar amount rounded to $0$ decimal places

$28569$

Correct answer

eTextbook and Media

List of Accounts

Attempts: $6$ of $15$ used

$($b$1)$

Your answer is correct.

Record all journal entries from September $1,2023,$ to September $1,2025,$ for an $6\%$ 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 $0$ for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries. Round answers to $0$ decimal places, e$.$g$.5,275.)$

Date

Account Titles and Explanation

Debit

Credit

choose a transaction date

$9/1/23$

Correct answer

enter an account title

Equipment

Correct answer

enter a debit amount

$32100$

Correct answer

enter a credit amount

Correct answer

enter an account title

Notes Payable

Correct answer

enter a debit amount

Correct answer

enter a credit amount

$32100$

Correct answer

choose a transaction date

$12/31/23$

Correct answer

enter an account title

Interest Expense

Correct answer

enter a debit amount

$642$

Correct answer

enter a credit amount

Correct answer

enter an account title

Interest Payable

Correct answer

enter a debit amount

Correct answer

enter a credit amount

$642$

Correct answer

choose a transaction date

$9/1/24$

Correct answer

enter an account title

Interest Payable

Correct answer

enter a debit amount

$642$

Correct answer

enter a credit amount

Correct answer

enter an account title

Interest Expense

Correct answer

enter a debit amount

$1284$

Correct answer

enter a credit amount

Correct answer

enter an account title

Cash

Correct answer

enter a debit amount

Correct answer

enter a credit amount

$1926$

Correct answer

choose a transaction date

$12/31/24$

Correct answer

enter an account title

Interest Expense

Correct answer

enter a debit amount

$642$

Correct answer

enter a credit amount

Correct answer

enter an account title

Interest Payable

Correct answer

enter a debit amount

Correct answer

enter a credit amount

$642$

Correct answer

choose a transaction date

$9/1/25$

Correct answer

enter an account title

Interest Payable

Correct answer

enter a debit amount

$642$

Correct answer

enter a credit amount

Correct answer

enter an account title

Interest Expense

Correct answer

enter a debit amount

$1284$

Correct answer

enter a credit amount

Correct answer

enter an account title

Notes Payable

Correct answer

enter a debit amount

$32100$

Correct answer

enter a credit amount

Correct answer

enter an account title

Cash

Correct answer

enter a debit amount

Correct answer

enter a credit amount

$34026$

Correct answer

eTextbook and Media

List of Accounts

Attempts: $7$ of $15$ used

$($b$2)$

Your answer is partially correct.

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 $0$ for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries. Round answers to $0$ decimal places, e$.$g$.5,275.)$

Date

Account Titles and Explanation

Debit

Credit

choose a transaction date

$9/1/23$

Correct answer

enter an account title

Equipment

Correct answer

enter a debit amount

$29746$

Correct answer

enter a credit amount

Correct answer

enter an account title

Notes Payab