Current Attempt in Progress

Sheridan Inc. decided to purchase equipment from Central Ontario Industries on January $2,2023,$ to expand its production capacity to

meet customers' demand for its product. Sheridan issued a $$898,000,5-$year, non$-$interest$-$bearing note to Central Ontario for the

new equipment when the prevailing market interest rate for obligations of this nature was $11\%.$ The company will pay off the note in $5$

$$179,600$ instalments due at the end of each year of the note's life. $($The tables in this problem are to be used as a reference for this

problem.$)$

Click here to view Table A$.4-$ PRESENT VALUE OF AN ORDINARY ANNUITY OF $1$

$($a$)$

Prepare the journal entry at the date of purchase. Calculate the purchase price using any of the three methods $($tables$,$ financial

calculator, or Excel$).($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is

required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List debit entry before credit entry. Round factor values to $5$

decimal places, e$.$g$.1\mathrm{.}25124$ and final answers to $0$ decimal places, e$.$g$.5,275.)$

Account Titles and Explanation

Debit

Credit