On January 1, 2010, the Sanders Corporation purchased equipment having a fair value of $68,301.30 by issuing a non interest bearing, $100,000, four year note due December 31, 2013.
Requirement:
Prepare the journal entries to record
(1) The purchase of the equipment,
(2) The annual interest charges over the life of the note,
(3) The repayment of the note.