Wells we are purchased two new drilling rigs for a total of $180,000 on January 1,...

Wells we are purchased two new drilling rigs for a total of $180,000 on January 1, 2014. The company paid $40,000 cash and signed a 4-year, 10% note for the remaining balance. The note is to be paid in four annual end-of-year payments of $44,166 each, with the first payment on December 31, 2014. Each payment includes interest on the unpaid balance plus principal.

Prepare the journal entry to record the purchase of the vans.

Prepare journal entries for each of the annual payments.

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ekkarill92 answered 1 year ago

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