1. On December 1, 2017, Barleycorn entered into a contract to buy a $78,000 baler from Rane Deere Corp. The contract required Barleycorn to pay $78,000 in advance on December 1, 2017. The baler (cost of $52,000) was delivered on January 31, 2018.

a) Prepare the journal entry to record the contract on December 1, 2017

b) Prepare all necessary journal entries to record the delivery of the equipment