On Dec. 31, 2013, Neyo Co. purchased machinery for $95,933.37. The Co. paid $20,000 down & agreed to finance the remainder by making 4 equal payments each Dec. 31 at the implicit interest rate of 12%.

1) Determine the amount of the annual payments to be made under the financing agreement.

2) Prepare the journal entry to record the acquisition of the machinery on Dec. 31, 2013.

3) Prepare the journal entry on Dec. 31, 2014.

Answer rating: 100% (QA)

1 Calculation of annual payments to be made under financing agreement Value of machinery 9... View the full answer