Fold and Hold Corporation purchased a machine which had a current cash equivalent cost of $38,971 on January 1, 2006. Fold and Hold paid cash of $10,000 and signed an interest-bearing note for the balance, payable in six equal annual installments on each December 31 beginning with December 31, 2006. The note specified a 10% interest rate on the unpaid balance.
1.Give the entry to record the purchase on January 1, 2006 ( round to the nearest dollar)
2.Give the entry to record the first installment payment on December 31,2006 ( round to the nearest dollar)
Dear Student, Please find answers to... View the full answer