On 31/12 / 20Χ0 the company V Corporation acquired a machine on credit. For the repayment, the company will pay an amount of € 7,000 on 31/12 / 20X0, an amount of € 5,000 on 31/12 / 20X1 and an amount of € 5,000 on 31/12 / 20X2. The usual credit terms are the full repayment of the price with the purchase. The annual market rate for these cases is 14%. Relevant calendar entries are requested assuming that V Corporation complies with IAS.
On 31/12 / 20Χ0 the company V Corporation acquired a machine on credit. For the repayment, the company will pay an amount of € 7,000 on 31/12 / 20X0, an amount of € 5,000 on 31/12 / 20X1 and an amount of € 5,000 on 31/12 / 20X2. The usual credit terms are the full repayment of the price with the purchase. The annual market rate for these cases is 14%. Relevant calendar entries are requested assuming that V Corporation complies with IAS.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(1) On 31/12 / 20Χ0 the company V Corporation acquired a machine on credit. For the repayment, the company will pay an amount of € 7,000 on 31/12 / 20X0, an amount of € 5,000 on 31/12 / 20X1 and an amount of € 5,000 on 31/12 / 20X2.
The usual credit terms are the full repayment of the price with the purchase. The annual market rate for these cases is 14%. Relevant calendar entries are requested assuming that V Corporation complies with IAS.
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