On January 1, 2014, Fishbone Corporation (an equipment manufacturer) sold equipment to Lost Company that cost $150,000. Fishbone received as consideration a $240,000 non-interest-bearing note due on December 31, 2016.. The prevailing rate of interest for a note of this type on January 1, 2014, was 5%.

1. Record the 1/1/14 transaction for Fishbone Corporation and all necessary entries from 2014-2016.

Record the 1/1/14 transaction for Lost Company and all necessary entries from 2014-2016.