On July 31, 2021, Company ABC purchased a new machine from XYZ. The agreement stipulated that ABC required a down payment $150,000 and a note requiring four payments of $75,000 (including interest) annually July 31. The first note payment is to be made on July 31, 2022. Assume that a market interest rate of 5% applies to this contract:

Record Company ABC's purchase of the machine on July 31, 2021? Prepare the journal entry(s) for Company ABC for year ended 12/31/23, if any, associated with the purchase of this equipment. Record Company ABC's payment on the note for July 31, 2023 if the company makes reversing entries?

What is the total interest expense ABC will incur over the life of this note?

Present in 21, Company AB BC required a down paym including interest) annually July 31. 31, 2022. Assume that a market interest Future Present value of value of an value of an Future Present Present ordinary ordinary annuity Value of 1 value of 1 annuity annuity due 1.21551 0.82270 431013 354595 3.54595 3.72325 5% D 4 ABC's purchase of