Zavala Drilling Co. purchased machinery on December 31, 2018, paying $100,000 down and agreeing to pay...

  

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Zavala Drilling Co. purchased machinery on December 31, 2018, paying $100,000 down and agreeing to pay the balance in four equal İnstallments of $125,000 payable each December 31. An assumed interest of 5% is implicit in the purchase price. Prepare the journal entries for each year, between 2018 through 2022 for the purchase and for the payments and interest on the following dates. Round amounts to the nearest dollar. Discount/Premium Unamortized Discount/Premium Cash Interest Bond Face Date Carrying Value Payment Expense Amortization Value Zavala Drilling Co. purchased machinery on December 31, 2018, paying $100,000 down and agreeing to pay the balance in four equal İnstallments of $125,000 payable each December 31. An assumed interest of 5% is implicit in the purchase price. Prepare the journal entries for each year, between 2018 through 2022 for the purchase and for the payments and interest on the following dates. Round amounts to the nearest dollar. Discount/Premium Unamortized Discount/Premium Cash Interest Bond Face Date Carrying Value Payment Expense Amortization Value

Answer rating: 100% (QA)

DATE DETAILS DEBIT CREDIT 31Dec18 Machinery Cash Liability Payable 543244 100000 443244 31Dec19I... View the full answer