The Questa Company purchased some machinery on March 10, 2014, that had a cost of $100,000 (ignore GST/PST). Show the journal entries that would record this purchase and payment under these three separate situations:
a. The company paid cash for the full purchase price.
b. The company purchased the machinery on credit with terms 1/30, n/60. Payment was made on
April 9, 2014.
c. The company signed a 10%, one-year note for the full purchase price. The note was paid on
March 10, 2015, the maturity date. Ignore year-end accruals.

  • CreatedJanuary 08, 2015
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