Answer:
Please see the answers below:
Explanation:
1.
Debit: Equipment         $912,000
Credit: Notes Payable                 $912,000
To record purchase of equipment at zero interest bearing note Central Michigan.
2.
Debit: Notes Payable        $182,400
Debit: Interest Payable      $20,064
Credit: Cash                                     $202,464
To record Cash Payment of 1st year Installment and Interest.
3.
Debit: Notes Payable        $182,400
Debit: Interest Payable      $20,064
Credit: Cash                                     $202,464
To record Cash Payment of 2nd year Installment and Interest.
4.
Debit: Depreciation Expense          $91,200
Credit: Accumulated Depreciation               $91,200
To record Depreciation Expense on Equipment over the life of 10 years with no salvage value. (Straight Line Depreciation is employed).