On January $1,2023$ Moon Ltd$.$ sold equipment with a cost of $$50,000$

and accumulated depreciation of $$15,000.$ In return, Moon accepted a

two year $$35,0002\%$ note receivable when the market rate of interest

was $8\%.$ Moon will receive interest payments each of

December $31,2023$ and $2024.$

The principal of $$35,000$ will be received December $31,2024.$

You must show calculations using applicable present value factors

below and prepare, in proper format, journal entries for Moon for

each of January $1,2023$ and December $31,2023.$

Moon uses the effective interest method of amortization.

n$=1$ n$=2$

PVIF, i$=2\%0\mathrm{.}980\mathrm{.}96$

PVIFA, i$=2\%0\mathrm{.}981\mathrm{.}94$

PVIF, i$=8\%0\mathrm{.}930\mathrm{.}86$

PVIFA, $8\%0\mathrm{.}931\mathrm{.}78$

Jan. $1$

Dec. $31$