On September 1,2010,Trego Contractors Purchased Machinery by Paying $15,000 Down

Essay

On September 1,2010,Trego Contractors purchased machinery by paying $15,000 down and signing a 4-year,10% installment note for the $60,000 balance.The loan agreement called for 8 semiannual payments beginning March 1,2011.Assume Trego has a 12/31 fiscal year end.
A.Determine the amount of each semiannual payment (round to the nearest dollar).
B.Prepare journal entries for the first two payments, including the accrual at year end.
C.Show how this note would impact the Trego's income statement, balance sheet and cash flow statements for the 12/31/10 fiscal year.