On August 2, 2010, Darmow Corporation purchased a new machine on a deferred payment basis. It made

Question:

On August 2, 2010, Darmow purchased a new machine on a deferred payment basis. It made a down payment of $1,000 and will make four monthly installments of $2,500 each beginning on September 1, 2010. The cash equivalent price of the machine was $9,500. Darmow incurred and paid installation costs amounting to $300.

Required
Prepare the journal entry to record the acquisition of the machine.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...