Prepare the journal entry for cramer for the transfer

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Question - Sales with Repurchase. Cramer Corp. sells idle machinery to Enyart Company on July 1, 2014 for $40,000. Cramer agrees to repurchase this equipment from Enyart on June 30, 2015 for a price of $42,000 and imputed interest rate of 6%.

A. Prepare the journal entry for Cramer for the transfer of the asset to ENyart on July 1, 2014

B. Prepare any other necessary journal entries for Cramer in 2014.

C. Prepare the journal entry for Cramer when the machinery is repurchased on June 30, 2015.

Reference no: EM132033635

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