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Lathrop Inc. purchased equipment on January 1, 2020, for $150,000 cash plus a note payable. The fair value of the equipment on January 1, 2020, is $542,666. The market rate of interest is 6%.5M Corp. uses the effective interest method to amortize discounts and premiums. Record the entries over the term of the note payable for the following three separate scenarios for the structuring of the note payable. a. The principal of $400,000 is due on December 31, 2021, and the note specified 5% interest payable each December 31 over a two-year period. b. The face value of the note payable is instead $441,200 and is due on December 31, 2021. The note is structured as a zero-interest-bearing note payable over a two-year period. c The loan is extended to three years with equal payments of $146,900 due on each December 31 over the term of the note. The note will be fully paid upon maturity. Case Oni Cash Inventory Equipment Note: Ro Land Note: Lis Deferred Revenue Iphabetical order. Bonds Payable Date Dr. Cr. Discount on Bonds Payable Jan 1, 2020 Discount and Debt Issuance Costs 0 Premium on Bonds Payable 0 0 Fair Value Adjustment-Bonds Payable 0 Note Payable 0 Discount on Note Payable Premium on Note Payable Dec 31, 202 Fair Value Adjustment-Note Payable 0 Interest Payable 0 0 Common Stock Paid-in Capital in Excess of Par-Common Stock Paid-in Capital-Stock Warrants Dec 31, 202 Retained EarningsPrior Period Adjustment 0 Debt Conversion Expense Interest Expense 0 0 Loss on Redemption of Bonds Gain on Redemption of Bonds Dec 31, 202 Unrealized Gain or Loss Income 0 Unrealized Gain or Loss-OCI 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Lathrop Inc. purchased equipment on January 1, 2020, for $150,000 cash plus a note payable. The fair value of the equipment on January 1, 2020, is $542,666. The market rate of interest 6%. 5M Corp. uses the effective interest method to amortize discounts and premiums. Record the entries over the term of the note payable for the following three separate scenarios for the structuring of the note payable. a. The principal of $400,000 is due on December 31, 2021, and the note specified 5% interest payable each December 31 over a two-year period. b. The face value of the note payable is instead $441,200 and is due on December 31, 2021. The note is structured as a zero-interest-bearing note payable over a two-year period. c The loan is extended to three years with equal payments of $146,900 due on each December 31 over the term of the note. The note will be fully paid upon maturity. Case One Case Two Case Three Note: Round your answers to the nearest whole dollar. Note: List multiple debits or credits (when applicable) in alphabetical order. Account Name Dr. Cr. Date Jan 1, 2020 0 0 0 . 0 0 0 0 0 To record note issuance Dec 31, 2020 . 0 0 0 0 To record interest expense Dec 31, 2021 0 0 0 0 To record interest expense Dec 31, 2021 0 0 0 0 To recard extinguishment of the note Please answer all parts of the question. Lathrop Inc. purchased equipment on January 1, 2020, for $150,000 cash plus a note payable. The fair value of the equipment on January 1, 2020, is $542,666. The market rate of interest is 6%. 5M Corp. uses the effective interest method to amortize discounts and premiums. Record the entries over the term of the note payable for the following three separate scenarios for the structuring of the note payable. a. The principal of $400,000 is due on December 31, 2021, and the note specified 5% interest payable each December 31 over a two-year period. b. The face value of the note payable is instead $441,200 and is due on December 31, 2021. The note is structured as a zero-interest-bearing note payable over a two-year period. c. The loan is extended to three years with equal payments of $146,900 due on each December 31 over the term of the note. The note will be fully paid upon maturity. Case One Case Two Case Three Note: Round your answers to the nearest whole dollar. Note: Include any net rounding difference for Note Payable, Net in the interest expense amount for 2022, Note: List multiple debits or credits (when applicable) in alphabetical order. Account Name Dr. Cr. Date Jan 1, 2020 0 0 0 0 0 0 To record note issuance Dec 31, 2020 . . 0 0 0 0 0 0 To record installment payment Dec. 31, 2021 . 0 0 0 0 0 0 To record installment payment Dec 31, 2022 0 0 0 0 . 0 0