Prepare the journal entry at december 31, 2005, Financial Accounting

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On December 31, 2004, International Refining Company purchased machinery having a cash selling price of $85,933.75. The company paid $10,000 down and agreed to finance the remainder by making four equal payments each December 31 at the implicit rate of 12%.
(1)Determine the amount of the annual payments to be made under the financing agreement.
(2)Prepare the journal entry to record the acquisition of the machinery on December 31, 2004.
(3)Prepare the journal entry at December 31, 2005.


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