All note payments include interest

Stated rate of interest = Market rate of interest for all notes

except Non-interest bearing notes.

Note 5: 2/31/19. Sold Equipment that has an cost of $150,000;

The company receivedin exchange a down payment of $80,000 and a Note For $250,000 to be paid 12/31/22

The stated rate of interest for the note is 6%.

Requirement A: Record the original transaction, for the seller.

Record the transactions through 12/31/22

2/31/19

12/31/19

12/31/2020

12/31/2021

12/31/2022

Requirement A: Record the original transaction, for the Buyer.

Record the transactions through 12/31/22

02/31/19

12/31/2019

12/31/2020

12/31/2021

12/31/2022