On January 1, 2008, Hardy, Inc. purchased certain plant assets under a deferred payment contract.
The agreement called for making annual payments of $10,000 for five years. The first | -
payment is due on January 1, 2008, and the remaining payments are due on January 1 of each of the next four years. Assume an imputed interest rate of 10%.
Required:
What entry should be made to record the purchase of these plant assets on January 1, 2008?