On January 1, Metlock Corporation issues a $120,000,10-year non-interest-bearing note to Camden Production for new machinery. The market interest rate is 11% and Camden is to pay $12,000 as an instalments at the end of each year. Fair value for a purchase of the new machinery in cash is not available from the supplier at this time. Click here to view Table A.4- PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 (a) Correct Answer (Used) Calculate the purchase price using any of the three methods (tables, financial calculator, or Excel). (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 5,275.) Purchase price $ (b) Correct Answer (Used) Your answer is partially correct. Prepare the journal entry to record the machinery purchase. (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. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) Date Account Titles and Explanation January 1 Debit Machinery Credit Purchase Discounts Record the journal entry for the first instalment payment on the note on Dec. 31. (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 0 for the amounts. List all debit entries before credit entries. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) Date Account Titles and Explanation Debit Credit December 31 Interest Expense Notes Payable