Notes Payable
Response to the following problem:
The Houston Corporation acquires machinery from the South Company in exchange for a $20,000 non-interest-bearing, five-year note on June 30, 2009. The note is due on June 30, 2014. The machinery has a fair value of $11,348.54, is subject to straight-line depreciation, and has an estimated life of 10 years (no residual value). Houston's fiscal year ends June 30.
Required:
Prepare the journal entries on each of the following dates to record the preceding information for Houston Corporation:
1. June 30, 2009 4. June 30, 2012
2. June 30, 2010 5. June 30, 2013
3. June 30, 2011 6. June 30, 2014