Corporation purchased a computer 31, 2019, Tor $105,000, paying $30,00 and agreeing to pay the balance in five equal installments of $15,000 payable each December 31 starting December 31, 2020. An assumed interest rate of 10% is implicit in the purchase price. The computer is depreciated on a straight-line basis over a useful life of 5 years with no salvage value. Instructions: Prepare journal entries relating to the equipment and notes payable for all 5 years.

Corporation purchased a computer 31, 2019, Tor $105,000, paying $30,00 and agreeing to pay the balance in five equal installments of $15,000 payable each December 31 starting December 31, 2020. An assumed interest rate of 10% is implicit in the purchase price. The computer is depreciated on a straight-line basis over a useful life of 5 years with no salvage value. Instructions: Prepare journal entries relating to the equipment and notes payable for all 5 years.

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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