Chart of Accounts CHART OF ACCOUNTS Sanchez Company General Ledger REVENUE 411 Sales Revenue ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Machine 189 Accumulated Depreciation EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 260 Notes Payable 261 Discount on Notes Payable 265 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings Instructions On October 30, 2019, Sanchez Company acquired a piece of machinery and signed a 12-month note for $24,000. The face value of the note includes the price of the machinery and interest. The note is to be paid in four $6,000 quarterly installments. The value of the machinery is the present value of the four quarterly payments discounted at an annual interest rate of 16% Required: 1. Prepare all the journal entries required to record the preceding information including the year-end adjusting entry and any payments Present value techniques should be used 2 Show how the preceding items would be reported on the December 31, 2019, balance sheet GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. CREDIT DEBIT 21,779.00 Oct. 30, 2019 Machine Discount on Notes Payable 2,221.00 Notes Payable 24,000.00 Dec 31, 2019 Interest Expense 581.00 581.00 Jan. 31, 2020 290.00 Discount on Notes Payable Interest Expense Notes Payable Cash 6,000.00 6,000.00 290.00 Discount on Notes Payable Interest Expense 10 Apr. 30, 2020 666.00 Notes Payable 6,000.00 Cash 6,000.00 Discount on Notes Payable 666.00 Jul. 31, 2020 Interest Expense 453.00 Notes Payable 6,000.00 Cash 6,000.00 Discount on Notes Payable 453.00 Oct. 30, 2020 Interest Expense 231.00 Notes Payable 6,000.00 Cash 6,000.00 Discount on Notes Payable 231.00 1. Prepare all the journal entries required to record the information given including the year-end adjusting entry and any payments. Payments are made at month-end on January 31, April 30, July 31. December 31. Present value techniques should be used General Journal Instructions