On April 1, 2004, a company purchased a machine to be implemented in the production process....

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On April 1, 2004, a company purchased a machine to be implemented in the production process. The value of the machine was 12,000 euros (plus VAT), with a commercial discount of 5% included in the invoice. To use the machine, the following operations needed to be completed within 14 months: a. Preparation of the land, 1,600 euros (plus VAT). b. An environmental impact report made by an expert in the field, 1,000 euros (plus VAT). To finance the purchase of the machine, the company asked and obtained a loan from a bank on April 1, 2014. The annual interest rate of the loan was 10% , and the maturity date was April 1, 2016. There were also installment costs, 500 euros (plus VAT), that were paid on May 1, 2015. After paying the installment costs, the company started to use the machine. Requirement: Journalize the transactions related to the years 2014 and 2015, with a VAT rate of 20%. On April 1, 2004, a company purchased a machine to be implemented in the production process. The value of the machine was 12,000 euros (plus VAT), with a commercial discount of 5% included in the invoice. To use the machine, the following operations needed to be completed within 14 months: a. Preparation of the land, 1,600 euros (plus VAT). b. An environmental impact report made by an expert in the field, 1,000 euros (plus VAT). To finance the purchase of the machine, the company asked and obtained a loan from a bank on April 1, 2014. The annual interest rate of the loan was 10% , and the maturity date was April 1, 2016. There were also installment costs, 500 euros (plus VAT), that were paid on May 1, 2015. After paying the installment costs, the company started to use the machine. Requirement: Journalize the transactions related to the years 2014 and 2015, with a VAT rate of 20%.

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2014 Transactions April 1 2014 Debit Machinery Ac 12000 Credit Bank Loan Ac 12000 The company purcha... View the full answer