On July 31, 2021, Company ABC purchased a new machine from XYZ. The agreement stipulated that ABC required a down payment $150,000 and a note requiring four payments of $75,000 (including interest) annually July 31. The first note payment is to be made on July 31, 2022. Assume that a market interest rate of 5% applies to this contract:

-Record Company ABC's purchase of the machine on July 31, 2021
-Prepare the journal entry(s) for Company ABC for year ended 12/31/23, if any, associated with the purchase of this equipment.
-Record Company ABC's payment on the note for July 31, 2023 if the company makes reversing entries?

Answer rating: 100% (QA)

Answer i Depreciation at a... View the full answer