On January 1, 2010, Lisa Company sold machinery with a book value of $118,000 to Mark Company. Mark Company signed a $180,000 non interest bearing note, payable in three $60,000 annual installments on December 31, 2010, 2011, and 2012. The fair value of the machinery was $149,211.12 on the date of sale. The machinery had been purchased by Lisa Company at a cost of $160,000.
Required:
1. Prepare all the journal entries on Lisa Company's books for January 1, 2010 through December 31, 2012.
2. Prepare the notes receivable portion of the Lisa Company 's balance sheet on December 31, 2010 and 2011.