List of Accounts

Record the journal entry for the first instalment payment on the note on Dec. $31.($Credit account titles are automatically indented

when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the

amounts. List all debit entries before credit entries. Round present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and the final

answer to $0$ decimal places e$.$g$.58,971.)$ On January $1,$ Bramble Corporation issues a $$120,000,10-$year non$-$interest$-$bearing note to Camden Production for new machinery

The market interest rate is $11\%$ and Camden is to pay $$12,000$ as an instalments at the end of each year. Fair value for a purchase of

the new machinery in cash is not available from the supplier at this time.

Click here to view Table A$\mathrm{.}4-$ PRESENT VALUE OF AN ORDINARY ANNUITY OF $1$

Calculate the purchase price using any of the three methods $($tables$,$ financial calculator, or Excel$).($Round factor values to $5$ decimal

places, e$.$g$.1\mathrm{.}25124$ and final answer to $0$ decimal places, e$.$g$.5,275.)$

Purchase price $

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List of Accounts

Prepare the journal entry to record the machinery purchase. $($Credit account titles are automatically indented when the amount is

entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List debit entry

before credit entry. Round present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and the final answer to $0$ decimal places e$.$g$.$

$58,971.$

Date

Account Titles and Explanation

Debit

Credit

January

$1$

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