On 1/1/2018, Kozey Incorporated purchases equipment, promising to pay $45,000 on 12/31/2021. The seller is financing the purchase. If Kozey Incorporated pursued a loan instead to purchase the equipment, the interest rate charged on the loan would be 6% annually. PART A What journal entry will Kozey Incorporated record on 1/1/2018 when the equipment is purchased? Round to the nearest dollar if necessary. Account Equipment (+A) Notes Payable (+L) No Journal Entry Required Debit 45,000.00 Credit 45,000.00

On 1/1/2018, Kozey Incorporated purchases equipment, promising to pay $45,000 on 12/31/2021. The seller is financing the purchase. If Kozey Incorporated pursued a loan instead to purchase the equipment, the interest rate charged on the loan would be 6% annually. PART A What journal entry will Kozey Incorporated record on 1/1/2018 when the equipment is purchased? Round to the nearest dollar if necessary. Account Equipment (+A) Notes Payable (+L) No Journal Entry Required Debit 45,000.00 Credit 45,000.00

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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