On January 1, 2021, Hirschbach Motors Company, an equipment and truck manufacturer sold equipment to McCoy Transportation Company that cost $150,000. Hirschbach Motors received as consideration a 5% interest-bearing note requiring payments of $80.000 annually for 3 years. The first note payment is to be made on December 31, 2021. The prevailing rate of interest for a note of this type on January 1, 2021, was 5%. (EV of $1. PV of $1. EVA oL $1. PVA o1 $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Prepare the journal entry for McCoy Transportation Company's purchase of the machine on January 1, 2021. Prepare the journal entry for the first installment payment on December 31, 2021. Prepare the journal entry for the second Installment payment on December 31, 2022. Prepare the journal entry for the third Installment payment on December 31, 2023. Prepare the journal entries for McCoy Transportation Company's purchase of the equipment on January 1, 2021, the first installment payment on December 31, 2021, the second installment payment on December 31, 2022, and the third installment payment on December 31, 2023. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

Transaction list Journal entry worksheet

General journal / credit or debit

Record the purchase of the equipment on January 1, 2021:

Record the first installment payment on December 31, 2021:

Record the second installment payment on December 31, 2022:

Record the third installment payment on December 31, 2023: