On June 30, Elite Co. bought equipment for $260,000, paying $50,000 cash and issuing a 5% note

Fantastic news! We've Found the answer you've been seeking!

Question:

On June 30, Elite Co. bought equipment for $260,000, paying $50,000 cash and issuing a 5% note for the balance. The note is to be paid in five semiannual installments of $42,000 on the principal, with interest accruing from the date of the preceding payment.

Journalize the entry to record (A) the transaction on June 30, (B) the payment of the first installment on December 31, and (C) the payment of the second installment on the following June 30.