Prepare journal entries for the transactions described

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Question - On February 1, 2020, M-Way Unlimited took out a loan from Local City Bank for $300,000. It was a 2-year note at 5% interest, payable in 24 months with no payments due until then. Immediately, M-Way Unlimited transferred $150,000 of it to An Co., a company that sells high tech equipment. This represented a 50% down payment on an agreed upon $300k total contract to buy technology equipment. The remainder was put in a money market fund earning 1.2% interest until October 1, 2020 when the final payment was due to An Co. On Oct 1 the remaining money was transferred from M-Way  Unlimited to An Co.

Required - Please prepare journal entries for the transactions described above.

Reference no: EM132831920

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