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  3. part a: on september 30, 2021, xyz corporation (an

Part A: On September 30, 2021, XYZ Corporation (an equipment manufacturer) sold equipment that cost...

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Accounting

Part A: On September 30, 2021, XYZ Corporation (an equipment manufacturer) sold equipment that cost $150,000 to ABC Company (a construction company). The agreement stipulated that ABC would pay a down payment of $75,000 and make five payments of $50,000 (including interest) annually on September 30. The first note payment is to be made on September 30, 2022. Assuming that a prevailing interest rate of 6% applies to this contract:

n

Future Value of 1

Present value of 1

Future value of an ordinary annuity

Present value of an ordinary annuity

Present value of an annuity due

i

5

1.33823

0.74726

5.63709

4.21236

4.46511

6%


1. Prepare the journal entry for XYZ to record the sale of the equipment on 9/30/21
  1. Prepare the journal entry(s) for XYZ for year ended 12/31/22, if any, associated with this sale of the equipment
  2. Prepare the journal entry(s) for XYZ for year ended 12/31/22, if any, associated with this sale of the equipment

4. Prepare the journal entry for ABC to record the purchase of the equipment on 9/30/21.

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