The Houston Corporation acquires machinery from the South Company in exchange for a $20,000 non interest bearing, five year note on June 30, 2009. The note is due on June 30, 2014. The machinery has a fair value of $11,348.54, is subject to straight line depreciation, and has an estimated life of 10 years (no residual value). Houston's fiscal year ends June 30.
Required:
Prepare the journal entries on each of the following dates to record the preceding information for Houston Corporation:
1. June 30, 2009
2. June 30, 2010
3. June 30, 2011
4. June 30, 2012
5. June 30, 2013
6. June 30, 2014