Quebec Construction Company purchased some equipment on September 10, 2020, that had a cost of $190,000 (ignore GST/PST). Show the journal entries that would record this purchase and payment under these three separate situations: a. The company paid cash for the full purchase price. b. The company purchased the equipment on credit with terms 1/30, n/60. Payment was made on October 9, 2020. c. The company signed a 12%, one-year note for the full purchase price. The note was paid on September 10, 2021, the maturity date. Ignore year-end accruals.
Quebec Construction Company purchased some equipment on September 10, 2020, that had a cost of $190,000 (ignore GST/PST). Show the journal entries that would record this purchase and payment under these three separate situations: a. The company paid cash for the full purchase price. b. The company purchased the equipment on credit with terms 1/30, n/60. Payment was made on October 9, 2020. c. The company signed a 12%, one-year note for the full purchase price. The note was paid on September 10, 2021, the maturity date. Ignore year-end accruals.
Chapter1: Financial Statements And Business Decisions
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Quebec Construction Company purchased some equipment on September 10, 2020, that had a cost of $190,000
(ignore GST/PST). Show the journal entries that would record this purchase and payment under these three
separate situations:
a. The company paid cash for the full purchase price.
b. The company purchased the equipment on credit with terms 1/30, n/60. Payment was made on
October 9, 2020.
c. The company signed a 12%, one-year note for the full purchase price. The note was paid on September 10,
2021, the maturity date. Ignore year-end accruals.
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