Reference no: EM131800408
Problem
On January 2, 2016, Evans Inc. sold used equipment to Vides Company for $3,000 down and three annual payments of $10,500, each made at December 31. Vides can borrow at 6%, Evans at 4.5%. Evans's equipment had cost $55,000 new and had a book value of $37,000 at the time of the sale.
2-1. Compute the sales price of the equipment.
2-2. Compute the amount of any gain or loss Evans had on the sale.
2-3. Record the sale by Evans.
2-4. Prepare an amortization table for Evans.
2-5. Prepare the journal entries needed for Evans at December 31, 2017.
2-6. Determine how the entry for the sale in 2016 would affect the SCF.
2-7. Determine how the entry(ies) written on 12/31/17 would affect the SCF.
2-8. Record the purchase of the equipment by Vides on 1/2/16.