Benenson Company bought some equipment on a contract entailing a €200,000 cash down payment and an €800,000 lump sum to be paid at the end of 4 years. The same equipment can be purchased for €788,000 cash. 1. Prepare the journal entry for the acquisition of the equipment. 2. Prepare journal entries at the end of each of the first 2 years. Ignore entries for depreciation.

Benenson Company bought some equipment on a contract entailing a €200,000 cash down payment and an €800,000 lump sum to be paid at the end of 4 years. The same equipment can be purchased for €788,000 cash. 1. Prepare the journal entry for the acquisition of the equipment. 2. Prepare journal entries at the end of each of the first 2 years. Ignore entries for depreciation.

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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