Blue Inc. has decided to purchase equipment from Central industries on January 2, 2022, to expand its production capacity to meet customers' demand for its product. Blue issues a $810,000, 5-year, zero-interest-bearing note to Central for the newequipment when the prevailing market rate of interest for obligations of this nature is 11%. The company will pay off the note in five $162,000 installments due at the end of each year over the life of the note. Prepare the journal entry at the date of purchase (Round factor values to 5 decimal places, eg. 1.25124 and final answers to 0 decimal places, eg. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit

Blue Inc. has decided to purchase equipment from Central industries on January 2, 2022, to expand its production capacity to meet customers' demand for its product. Blue issues a $810,000, 5-year, zero-interest-bearing note to Central for the newequipment when the prevailing market rate of interest for obligations of this nature is 11%. The company will pay off the note in five $162,000 installments due at the end of each year over the life of the note. Prepare the journal entry at the date of purchase (Round factor values to 5 decimal places, eg. 1.25124 and final answers to 0 decimal places, eg. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 13C

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