Purchase machinery by paying $50,000 down and agreeing on 4 equal installments of $40,000 payable at the end of each year. Interest rate is 8%. Prepare journal entries for the acquisition of the machine and the first 2 $40,000 payments on the note.

Purchase machinery by paying $50,000 down and agreeing on 4 equal installments of $40,000 payable at the end of each year. Interest rate is 8%. Prepare journal entries for the acquisition of the machine and the first 2 $40,000 payments on the note.

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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