On Dec. 31, 2013, Neyo Co. purchased machinery for $95,933.37. The Co. paid $20,000 down & agreed
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Question:
On Dec. 31, 2013, Neyo Co. purchased machinery for $95,933.37. The Co. paid $20,000 down & agreed to finance the remainder by making 4 equal payments each Dec. 31 at the implicit interest rate of 12%.
1) Determine the amount of the annual payments to be made under the financing agreement.
2) Prepare the journal entry to record the acquisition of the machinery on Dec. 31, 2013.
3) Prepare the journal entry on Dec. 31, 2014.
Related Book For
Financial Accounting
ISBN: 978-0077862268
2nd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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