Pearl Corp. sells idle machinery to Enyart Company on July 1, 2020, for $31,000. Pearl agrees to repurchase this equipment from Enyart on June 30, 2021, for a price of $32,240 (an imputed interest rate of 4%).

Prepare the journal entry for Pearl for the transfer of the asset to Enyart on July 1, 2020. (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.)

Account Titles and Explanation	Debit	Credit

eTextbook and Media

List of Accounts

Prepare any other necessary journal entries for Pearl in 2020. (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.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2020

eTextbook and Media

List of Accounts

Prepare the journal entry for Pearl when the machinery is repurchased on June 30, 2021. (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.)

Date	Account Titles and Explanation	Debit	Credit
Jun. 30, 2021
	(To record interest)
	(To record payment)