Question

Benenson Company bought some equipment on a contract entailing a €200,000 cash down payment and an €800,000 lump sum to be paid at the end of 4 years.
The same equipment can be purchased for €788,000 cash.
1. Prepare the journal entry for the acquisition of the equipment.
2. Prepare journal entries at the end of each of the first 2 years. Ignore entries for depreciation.



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  • CreatedFebruary 20, 2015
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