Please help me solve part b $($the red items$).$ I have already tried the approach of debiting equipment and crediting notes payable for the amount of $709,635.$ Thanks :$)))$

Pharoah Inc. decided to purchase equipment from Central Ontario Industries on January $2,2023,$ to expand its production capacity to meet customers' demand for its product. Pharoah issued a $$936,000,5-$year, non$-$interest$-$bearing note to Central Ontario for the new equipment when the prevailing market interest rate for obligations of this nature was $10\%.$ The company will pay off the note in $5$ $$187,200$ instalments due at the end of each year of the note's life. $($The tables in this problem are to be used as a reference for this problem.$)$ Click here to view Table A$.4-$ PRESENTVALUE OF AN ORDINARY ANNUITY OF $1$

$($a$)$

Your answer is correct. Prepare the journal entry at the date of purchase. Calculate the purchase price using any of the three methods $($tables$,$ financial

calculator, or Excel$).($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. List debit entry before credit entry. Round factor values to $5$ decimal places, e$.$s$.1\mathrm{.}25124$ and final answers to $O$ decimal places, e$.$g$.5\mathrm{.}275.)$

Account Titles and Explanation Debit Credit

Equipment $709635$

Notes Payable $709635$

$($b$)$

Your answer is partially correct.

Prepare the journal entries at the end of the first year to record the payment of principal and interest, assuming that the company uses the effective interest method. $($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. List all debit entries before credit entries. Round answers to O decimal places, e$.$g$.5,275.)$

Account Titles and Explanation Debit Credit

Dec. $31,2023$

Depreciation Expense $141927$

Accumulated Depreciation $-$ Equipment $141927$

Jan $2,2024$

Interest Expense $70964$

Notes Payable $116236$

Cash $187200$