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In January 2019, Cordova Company entered into a contract to acquire a new machine for its factory. The machine, which has a cash price of $280,000, was paid for as follows: Down payment $130,000 Note payable in 4 equal annual payments starting in January 2020 $120,000 500 shares of Cordova preferred stock with a mutually agreed value of $100 per share (par value $100) $50,000 Fair rate of interest on the non-interest-bearing note 10% GENERAL JOURNAL     DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1           2           3           4           5           6

In January 2019, Cordova Company entered into a contract to acquire a new machine for its factory. The machine, which has a cash price of $280,000, was paid for as follows: Down payment $130,000 Note payable in 4 equal annual payments starting in January 2020 $120,000 500 shares of Cordova preferred stock with a mutually agreed value of $100 per share (par value $100) $50,000 Fair rate of interest on the non-interest-bearing note 10% GENERAL JOURNAL     DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1           2           3           4           5           6

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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In January 2019, Cordova Company entered into a contract to acquire a new machine for its factory. The machine, which has a cash price of $280,000, was paid for as follows:
Down payment $130,000
Note payable in 4 equal annual payments starting in January 2020 $120,000
500 shares of Cordova preferred stock with a mutually agreed value of $100 per share (par value $100) $50,000
Fair rate of interest on the non-interest-bearing note 10%
GENERAL JOURNAL
 
  DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT
1
 
 
 
 
 
2
 
 
 
 
 
3
 
 
 
 
 
4
 
 
 
 
 
5
 
 
 
 
 
6
 
 
 
 
 
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