Q/ The following events that occur during year 2020 on Arjiwan CO: 1- On Mar 1, the company borrowed $360,000 from a local bank on a 10-years mortgage with annual interest rate is 10%. 2- 1/July company bought equipment costing $380,000 has useful life of 10 years and its estimated salvage value is $20,000 using the straight line method. 3- 1/Sep company paid rent 21000 cash for 7 months 4- 31/12 company found that it not paid rent 7000 for Oct Required: record the necessary entries

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Q/ The following events that occur during year 2020 on Arjiwan CO:
1- On Mar 1, the company borrowed $360,000 from a local bank on a 10-years mortgage
with annual interest rate is 10%.
2- 1/July company bought equipment costing $380,000 has useful life of 10 years and its
estimated salvage value is $20,000 using the straight line method,
3- 1/Sep company paid rent 21000 cash for 7 months
4- 31/12 company found that it not paid rent 7000 for Oct
Required: record the necessary entries
Transcribed Image Text:Q/ The following events that occur during year 2020 on Arjiwan CO: 1- On Mar 1, the company borrowed $360,000 from a local bank on a 10-years mortgage with annual interest rate is 10%. 2- 1/July company bought equipment costing $380,000 has useful life of 10 years and its estimated salvage value is $20,000 using the straight line method, 3- 1/Sep company paid rent 21000 cash for 7 months 4- 31/12 company found that it not paid rent 7000 for Oct Required: record the necessary entries
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