South Company, a public company, sells large construction equipment. On $1$ January $20$X$5,$ the company sold North Company a

machine at a quoted price of $$172,000.$ South collected $$66,000$ cash and received a two$-$year note payable for the balance.

Required:

Give South's required entries for the two years, assuming an interest$-$bearing note, face value $$106,000(8\%$ interest, simple interest,

payable every $31$ December and $8\%$ market rate$).($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required"

in the first account field.$)$

Journal entry worksheet

Record the $$172,000$ sale of machine of which $$66,000$ received in cash and

balance as note receivable.

Note: Enter debits before credits.