The company purchased a piece of equipment. Terms of the purchase were as follows: $10,000 in cash
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The company purchased a piece of equipment. Terms of the purchase were as follows: $10,000 in cash immediately, followed by note payments of $20,000 at the end of each year for the next eight years. The market rate of interest is 9%. Make the journal entries necessary to record
(1) The initial purchase and
(2) The first cash payment of $20,000 at the end of the first year.
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1 Equipment 120696 Discount on Notes Payable 49304 Cash 10000 Notes Payable 160000 Business calcu...View the full answer
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Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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