On January 1, 2014, Fishbone Corporation sold equipment to Lost Company that cost $250,000 and that...

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Accounting

On January 1, 2014, Fishbone Corporation sold equipment to LostCompany that cost $250,000 and that had accumulated depreciation of$100,000 on the date of sale. Fishbone received as consideration anon-interest-bearing note requiring payments of $80,000 annuallyfor 3 years. The first note payment is to be made on January 1,2014. The prevailing rate of interest for a note of this type onJanuary 1, 2014, was 5%.
Record the 1/1/14 transaction for Fishbone Corporation and allnecessary entries from 2014-2016.
Record the 1/1/14 transaction for Lost Company and all necessaryentries from 204-2016.

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1 The journal entries for F Corporation are provided below Date Account tile and explanation Debit Credit Jan12014 Notes receivable 228000 Accumulated depreciation 100000 Equipment 250000 Gain on sale of equipment 78000 to record sale of equipment in exchange of See Answer

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