Question: On December 3 0 , Year 1 , Bart, Inc. purchased a machine from Fell Corp. in exchange for a noninterest bearing note requiring eight

On December 30, Year 1, Bart, Inc. purchased a machine from Fell Corp. in exchange for a
noninterest bearing note requiring eight payments of $20,000. The first payment was made on
December 30, Year 1, and the others are due annually on December 30. At date of issuance, the
prevailing rate of interest for this type of note was 11%. Present value factors are as follows:
On Bart's December 31, Year 1 balance sheet, how would the notes be reported?
Show calculations and/or Journal entries please.
ADP Industries purchased a piece of Laser Equipment from Zhang Corporation on November 1,
In payment for the $48,000 purchase, ADP issued a one-year installment note to be paid in
equal monthly payments at the end of each month. The payments include interest at the rate of
12%.
Required:
Prepare the journal entry for ADP's purchase of the equipment on November 1,2021.
Prepare the journal entry for the first installment payment on November 30,2021.
What is the amount of interest expense that ADP will report in its income statement for the
year ended December 31,2021?
On December 30, Year 1, Bart, Inc. purchased a machine from

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