On October 30, 2019, Sanchez Company acquired a piece of machinery and signed a 12-month note for $24,000. The face value of the note includes the price of the machinery and interest. The note is to be paid in four $6,000 quarterly installments. The value of the machinery is the present value of the four quarterly payments discounted at an annual interest rate of 16%. Required: 1. Prepare all the journal entries required to record the preceding information including the year-end adjusting entry and any payments. Present value techniques should be used 2. Show how the preceding items would be reported on the December 31, 2019, balance sheet General Ledger ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Machine 189 Accumulated Depreciation LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 260 Notes Payable 261 Discount on Notes Payable 265 Income Taxes Payable REVENUE 411 Sales Revenue EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense EQUITY 311 Common Stock 331 Retained Earnings All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. PAGE 1 GENERAL JOURNAL Score: 117/259 DATE ACCOUNT TITLE POST. REF DEBIT CREDIT 1 Oct. 31 Machine 21,779.00 2 21,779.00 3 5 Dec. 31 Interest Expense Interest Jan. 31 Interest Expense 581.00 581.00 290.00 9 581.00 7 Notes Payable 5,129.00 8 Cash 6,000.00 9 Apr. 30 Interest Expense 666.00 10 10 Notes Payable 5,334.00 11 Cash 6,000.00 12 12 Jul 31 Interest Expense 453.00 5,547.00 13 Notes Payable 6,000.00 14 14 Cash 4 15 13 16 Dec. 31 2. Show how the preceding items would be reported on the December 31, 2019, balance sheet. Balance Sheet Instructions Question not attempted. 1 Property, Plant, and Equipment: 2 3 Current Liabilities: 4 5 SANCHEZ COMPANY Score: 0/34 Partial Balance Statement December 31, 2019