On October 1, 2025, Marigold Equipment Company sold a pecan-harvesting machine to Valco Brothers Farm, Inc....

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On October 1, 2025, Marigold Equipment Company sold a pecan-harvesting machine to Valco Brothers Farm, Inc. In lieu of a cash payment Valco Brothers Farm gave Arden a 2-year, $169,200, 8% note (a realistic rate of interest for a note of this type). The note required interest to be paid annually on October 1. Marigold's financial statements are prepared on a calendar-year basis. Assuming Valco Brothers Farm fulfills all the terms of the note, prepare the necessary journal entries for Marigold Equipment Company for the entire term of the note. (Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date 10/1/25 12/31/25 10/1/26 12/31/26 10/1/27 Account Titles and Explanation Notes Receivable Sales Revenue Interest Receivable Interest Revenue Cash Interest Receivable Interest Revenue Interest Receivable Interest Revenue Cash Interest Revenue Interest Receivable (To record the collection of interest) (To record the collection of the note) Debit 169,200 3,384 13,536 3,384 13,536 Credit 169,200 3,384 3,384 10,152 3,384 10.152 3,384 On October 1, 2025, Marigold Equipment Company sold a pecan-harvesting machine to Valco Brothers Farm, Inc. In lieu of a cash payment Valco Brothers Farm gave Arden a 2-year, $169,200, 8% note (a realistic rate of interest for a note of this type). The note required interest to be paid annually on October 1. Marigold's financial statements are prepared on a calendar-year basis. Assuming Valco Brothers Farm fulfills all the terms of the note, prepare the necessary journal entries for Marigold Equipment Company for the entire term of the note. (Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date 10/1/25 12/31/25 10/1/26 12/31/26 10/1/27 Account Titles and Explanation Notes Receivable Sales Revenue Interest Receivable Interest Revenue Cash Interest Receivable Interest Revenue Interest Receivable Interest Revenue Cash Interest Revenue Interest Receivable (To record the collection of interest) (To record the collection of the note) Debit 169,200 3,384 13,536 3,384 13,536 Credit 169,200 3,384 3,384 10,152 3,384 10.152 3,384