Eagle Corp. purchased a new piece of equipment on January 1,…

Eagle Corp. purchased a new piece of equipment on January 1, 2024.  The equipment had a list price of $90,000, however the seller agreed to allow Eagle Corp. to pay for the equipment in 8 yearly installments of $14,000 on December 31 of each year.  Assuming the note incurs interest at 6% annually, what amount should Eagle Corp. debit the equipment account for on the date of purchase?  You must use the honorlock calculator to solve the problem. (round to the nearest dollar).   Answer:  $_______

Eagle Corp. issues a $947,698, 10% 5 year notes payable on J…

Eagle Corp. issues a $947,698, 10% 5 year notes payable on January 1, 2024.  The note will be repaid in five annual installments of $250,000, each payable at the end of the year (i.e. $250,000 at the end of 2024, $250,000 at the end of 2025, $250,000 at the end of 2026, $250,000 at the end of 2027, and $250,000 at the end of 2028).  What is the amount of interest expense that should be recorded by Eagle Corp. in the second year (i.e. on the income statement for the year ended December 31, 2025)?  You must use the honorlock calculator to solve the problem. (round to the nearest dollar).   Answer:  $_______