On January 2, 2014, Johnson Inc. sold used equipment to Rencher Company for $3,000 down and three annual payments of $9,500, each made at December 31. Rencher can borrow at 5.5%, Johnson at 4%. Johnson's equipment had cost $45,000 new and had a book value of $25,000 at the time of the sale.
1-1. Compute the sales price of the equipment.
1-2. Compute the amount of any gain or loss Johnson had on the sale.
1-3. Record the sale by Johnson.
1-4. Prepare an amortization table for Johnson.
1-5. Prepare the journal entries needed for Johnson at December 31, 2015.
1-6. Record the purchase of the equipment by Rencher on 1/2/14.
1-7. Determine how the entry for the sale in 2014 would affect the SCF.
1-8. Determine how the enry(ies) written on 12/31/15 would affect the SCF.