On January $1,$ Year $5,$ Peg, Inc. bought some equipment by signing a non$-$interest$-$bearing note for $$150,000.$ The note is to be paid in four equal annual $$37,500$ payments, beginning on December $31,$ Year $5.$ Current interest rates was $8\%.$ The present value and future value information for $8\%,4$ periods follows:

Future value of $$1$ $$1\mathrm{.}360$

Present value of $$10\mathrm{.}735$

Future value of an ordinary annuity of $$14\mathrm{.}506$

Present value of an ordinary annuity of $$13\mathrm{.}312$

Required:

Prepare the journal entries necessary on January $1,$ Year $5,$ and December $31,$ Year $5.$

Prepare the journal entries necessary on January $1,$ Year $5,$ and December $31,$ Year $5.$

General Journal Instructions

PAGE $1$

GENERAL JOURNAL

DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT