Problem 7-31A (Algo) Accounting for an installment note payable LO 7.5 The following transactions apply to Pecan Co. for Year 1 , its first year of operations: 1. Received $39,000 cash in exchange for issuance of common stock. 2. Secured a $108,000 ten-year installment loan from State Bank. The interest rate is 5 percent and annual payments are $13,986. 3. Purchased land for $29,000. 4. Provided services for $80,000. 5. Paid other operating expenses of $36,000. 6. Paid the annual payment on the loan. Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare an income statement and balance sheet for Year 1 . c. What is the interest expense for Year 2? Year 3 ? Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. If there is no effect on the Account Titles for Retained Eamings, leave the cell blank. Not all cells will require entry.) Prepare an income statement for Year 1. Prepare a balance sheet for Year 1. Complete this question by entering your answers in the tabs below. What is the interest expense for Year 2? Year 3? (Round your answers to the nearest whole dollar amount