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Monty Corp. sells idle machinery to Sandhill Company on July 1, 2020, for $63,000. Monty agrees to repurchase this equipmentPrepare the journal entries for Monty when the machinery is repurchased on June 30, 2021. (Credit account titles are automati

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Journal entries
date particulars Debit credit
01-Jul cash 63000
repurchase obligation 63000
31-Dec Interest expenses(63000*3%) 1890
repurchase obligation 1890
30-Jun Interest expenses 1890
repurchase obligation 1890
30-Jun repurchase obligation 66780
cash 66780
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