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Exercise 10-15 Deferred payment purchase Cardinals Corporation purchased a computer on December 31, 2019, for $105,000, paying $30,000 down and agreeing to pay the balance in five equal installments of $15,000 payable each December 31 starting in 2020. An assumed interest rate of 10% is implicit in the purchase price. Instructions: Prepare journal entries relating to the equipment and notes payable for all 5 years. Date Account Debit Credit

Exercise 10-15 Deferred payment purchase Cardinals Corporation purchased a computer on December 31, 2019, for $105,000, paying $30,000 down and agreeing to pay the balance in five equal installments of $15,000 payable each December 31 starting in 2020. An assumed interest rate of 10% is implicit in the purchase price. Instructions: Prepare journal entries relating to the equipment and notes payable for all 5 years. Date Account Debit Credit

FINANCIAL ACCOUNTING
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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Exercise 10-15 Deferred payment purchase Cardinals Corporation purchased a computer on December 31, 2019, for $105,000, paying $30,000 down and agreeing to pay the balance in five equal installments of $15,000 payable each December 31 starting in 2020. An assumed interest rate of 10% is implicit in the purchase price. Instructions: Prepare journal entries relating to the equipment and notes payable for all 5 years. Date Account Debit Credit
Transcribed Image Text:Exercise 10-15 Deferred payment purchase Cardinals Corporation purchased a computer on December 31, 2019, for $105,000, paying $30,000 down and agreeing to pay the balance in five equal installments of $15,000 payable each December 31 starting in 2020. An assumed interest rate of 10% is implicit in the purchase price. Instructions: Prepare journal entries relating to the equipment and notes payable for all 5 years. Date Account Debit Credit
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