$1\mathrm{.}1.$ On July $31,2024,$ Seller Corporation $($an equipment manufacturer$)$ sold equipment to Purchasing Company that cost $$300,000.$ Fishbone received as consideration a $4\%$ interest$-$bearing note requiring $5$ payments of $$122,000($including interest$)$ on July $31.$ The first note payment is to be made on July $31,2024.$ The market rate of interest for a note of this type on July $31,2024,$ was $4\%.$

a$.$ Record the sale of equipment on July $31,2024$ on Seller$$s books.

PVAD $=(122,000)*(5,4\%)=(122,000)(4\mathrm{.}62990)=$ $$564,848$ P$.$V

$=122,000$ Cash, $442,848$ Notes Rec.

Date Accounts Debit Credit

$7/31/24$ Cash $$122000$

Cost of Good Sold $300000$

Notes Receivable $442848$

Inventory $-$ Equipment $300000$

Sale Revenue $564848$

b$.$ Record the entry$($s$)$ for the year ended $12/31/24,$ if any, associated with the sale of this equipment.

$$442848*0\mathrm{.}04*5/12=7380\mathrm{.}8$ ~ $7381$

Date Accounts Debit Credit

$12/31/24$ Interest Receivable $$7381$

Interest Revenue $7381$

$$

c$.$ Record the entry for the receipt of payment on $07/31/2025$ for Seller Corporation if the company makes$($uses$)$ reversing entries.

$$442848*0\mathrm{.}04*12/12=17713\mathrm{.}92$ ~ $17714$

Date Accounts Debit Credit

$07/31/2025$ Cash $$122000$

Interest Revenue $17714$

Notes Receivable $104286$

d$.$ Prepare the journal entry for Purchasing Company to record the purchase of the equipment on $07/31/24.$

Date Accounts Debit Credit

$07/31/24$ Equipment

Cash

Note Payable