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On February 1st of 2019, Solid Inc. exchanged a $245,000 two year note payable (the...

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Accounting

On February 1st of 2019, Solid Inc. exchanged a $245,000 two year note payable (the note comes with a 10% interest rate, interest due on January 31st of each year) for a piece of equipment. The equipment has a 10 year useful life, a $25,000 residual value, and will be depreciated on a straight-line basis.

Provide all journal entries necessary related to this transaction for the following dates. Solid Inc. has a Dec 31st fiscal year end and provides annual financial statements.

February 1st, 2019

December 31st, 2019

January 31st, 2020

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