Cascade company was trying to sell some of its old oil and gas drilling equipment. On January 1, 2021, Cascade Company sold equipment to Yukon Oil and Gas Company. The equipment cost $250,000 and had accumulated depreciation of $100,000 on the date of sale. Yukon Oil and Gas Company gave Cascade Company a $240,000 non-interest bearing note due December 31, 2023 prevailing rate of interest for a note of this type on January 1, 2021, was 5%

(EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. If your answer involves Discount on Notes Payable, abbreviate it to DON.) Required:

Prepare the journal entry for Yukon's purchase of the machine on January 1, 2021. Prepare the journal entry for Yukon on December 31, 2021. Prepare the journal entry for Yukon on December 31, 2022. Prepare the journal entry for Yukon on December 31. 2023.

Journal entry worksheet

S.No/Date Account title Debt Credit

Prepare the journal entry for Yukon's purchase of the machine on January 1, 2021

January 01, 2021:

Record the entry for yukon on December 31, 2021

December 31, 2021:

Prepare the journal entry for yukon on December 31,2022

December 31, 2022:

Prepare the journal entry for yukon on December 31, 2023

December 31, 2023: