On January $1,2023,$ Wildhorse Corporation, sells equipment to Culmer Inc. for $$92,400.$ Wildhorse agrees to repurchase this equipment from Culmer on December $31,2024,$ for a price of $$111,804.$ Assume that Wildhorse continues to have control over the asset during the two$-$year period. An interest rate of $10\%$ is imputed from the agreement. Wildhorse has a December $31$ year end.

$($a$)$

Prepare the journal entry on January $1,2023.($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 O for the amounts. List debit entry before credit entry.$)$

Date

Account Titles and Explanation

Debit

Credit

Jan. $1,2023$

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List of Accounts