Anxiety Company acquired three items of machinery. ▪ On January 1,2017,the entity purchased a machine for...

Anxiety Company acquired three items of machinery. ▪ On January 1,2017,the entity purchased a machine for P500,000 down and four monthly installments of P1,250,000.The cash price of the machine was P4,700,000. ▪ On December 31,2017,the entity purchased a machine in exchange for a noninterest bearing note requiring ten payments of P500,000. ▪ The first payment was made on December 31,2018, and the others are due annually on December 31. ▪ The prevailing rate of interest for this type of note at date of issuance was 12%. ▪ The present value of an ordinary annuity of 1 at 12% is 5.33 for nine periods and 5.65 for ten periods.▪ On December 31,2017,the entity acquired used machinery by issuing the seller a two-ear, noninterest- bearing note for P3,000,000.In recent borrowing, the entity has paid a 12% interest for this type of note. ▪ The present value of 1 at 12% for 2 years is.80 and the present value of an ordinary annuity of 1 at 12% for 2 years is 1.69. Required: Prepare journal entries for 2017,2018 and 2019.

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ekkarill92 answered 1 year ago

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