7. On I January 2008, Spencer purchased equipment for his business valued $10 000 by cheque. He also wanted to expand his business at this time so he borrowed $28 000 from the Rose Bank of Nassau at the rate of 12% interest per annum for two and a half (22) years on 31 January 2008. On 31 December 2008, he depreciated the equipment by 2½% of cost. On this same date, Rose Bank of Nassau deducted $700 from the business' current account for interest payment due on the bank loan and bank charges of $60 for services rendered.

7. On I January 2008, Spencer purchased equipment for his business valued $10 000 by cheque. He also wanted to expand his business at this time so he borrowed $28 000 from the Rose Bank of Nassau at the rate of 12% interest per annum for two and a half (22) years on 31 January 2008. On 31 December 2008, he depreciated the equipment by 2½% of cost. On this same date, Rose Bank of Nassau deducted $700 from the business' current account for interest payment due on the bank loan and bank charges of $60 for services rendered.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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