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On January 1, 2021, Byner Company purchased a used tractor. Byner paid $5,000 down and signed a noninterest-bearing note requiring $32,000 to be paid on December 31, 2023. The fair value of the tractor is not determinable. An interest rate of 10% properly reflects the time value of money for this type of loan agreement. The company's fiscal year-end is December 31. (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of S1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the journal entry to record the acquisition of the tractor. 2. How much interest expense will the company include in its 2021 and 2022 income statements for this note? 3. What is the amount of the liability the company will report in its 2021 and 2022 balance sheets for this note? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 Prepare the journal entry to record the acquisition of the tractor. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. Do not round intermediate calculations, Round your answers to the nearest whole dollars.) No Transaction General Journal Debit Credit Tractor 29,042 Discount on notes payable 24,042 Cash 5,000 1 Req2 and 3 >

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