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Exercise 18-22 Metlock Corp. sells idle machinery to Enyart Company on July 1, 2017, for $44,000. Metlock agrees to repurchase this equipment from Enyart on

Exercise 18-22

Metlock Corp. sells idle machinery to Enyart Company on July 1, 2017, for $44,000. Metlock agrees to repurchase this equipment from Enyart on June 30, 2018, for a price of $46,200 (an imputed interest rate of 5%).

Prepare the journal entry for Metlock for the transfer of the asset to Enyart on July 1, 2017.

Prepare any other necessary journal entries for Metlock in 2017.

Prepare the journal entry for Metlock when the machinery is repurchased on June 30, 2018.

Account Titles and Explanation Debit Credit

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