Goodgold Corporation Purchased a Machine Which Had a Current Cash

Essay

Goodgold Corporation purchased a machine which had a current cash equivalent cost of $38,971 on January 1, 20X1. Goodgold paid cash of $10,000 and signed an interest-bearing note for the balance, payable in six equal annual instalments on each December 31 beginning with December 31, 20X1. The note specified a 10% interest rate on the unpaid balance.
A. Give the entry to record the purchases on January 1, 20X1 (round to the nearest dollar)
B. Give the entry to record the first installment payment on December 31, 20X1 (round to the nearest dollar)