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Part 2B BBA Consulting Limited ("BBA") has the following transactions during the month ended 28...

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Part 2B BBA Consulting Limited ("BBA") has the following transactions during the month ended 28 February 2021: (i) On 1 February 2021, BBA purchased a three-year zero-interest-bearing note issued by a financial institution, with a face value of $15,972, due on 31 January 2024. The market rate of interest for a note of similar risk is 10%. Cash equal to the present value of this note was paid by BBA on 1 February 2021. (ii) On 1 February 2021, one piece of equipment costing $38,000 was purchased on account. Half of the price was paid to the supplier on 14 February 2021, and the remaining being paid in March 2021. The equipment is expected to remain useful in BBA's operation for three years. Residual value is estimated as $2,000. Straight-line depreciation method is adopted. Required: Prepare all the journal entries (including adjusting entries, if any) for the month ended 28 February 2021. Ignore the closing entries. (10 marks)

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