On March 31, 2021, Fishbone Corporation (an equipment manufacturer) sold equipment to Lost Company that cost $280,000. Fishbone received as consideration a down payment of $150,000 and 5% interest-bearing note requiring 5 annually payments of $70,000 (including interest). The first note payment is to be made on March 31, 2022. The prevailing rate of interest for a note of this type on March 31, 2021 was 5%.

n=5

i=5%

1) Record Fishbone corporation's sales of equipment on March 31, 2021.

2) Prepare the entry(s) for the ended 12/31/21, if any, associated with the sale of equipment.

3) Prepare the entry for the receipt of payment on 03/31/24 for Fishbone corporation if the company does not use reversing entries.

4) Prepare the journal entry for the Lost company to record the purchase of the equipment on 03/31/24.