Sabonis Cosmetics Co. purchased machinery on December 31, 2018, paying $50,000 down and agreeing to pay the balance in four equal installments of $40,000 payable each December 31. An assumed interest of 8% is implicit in the purchase price. Instructions Prepare the journal entries that would be recorded for the purchase and for the payments and interest on the following dates. a. December 31, 2018. b. December 31, 2019. c. December 31, 2020. d. December 31, 2021. e. December 31, 2022.
Sabonis Cosmetics Co. purchased machinery on December 31, 2018, paying $50,000 down and agreeing to pay the balance in four equal installments of $40,000 payable each December 31. An assumed interest of 8% is implicit in the purchase price. Instructions Prepare the journal entries that would be recorded for the purchase and for the payments and interest on the following dates. a. December 31, 2018. b. December 31, 2019. c. December 31, 2020. d. December 31, 2021. e. December 31, 2022.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 23P: Notes Receivable On January 1, 2019, Lisa Company sold machinery with a book value of 118,000 to...
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Sabonis Cosmetics Co. purchased machinery on December 31, 2018, paying $50,000 down and agreeing to pay the balance in four equal installments of $40,000 payable each December 31. An assumed interest of 8% is implicit in the purchase price.
Instructions
Prepare the
a. December 31, 2018.
b. December 31, 2019.
c. December 31, 2020.
d. December 31, 2021.
e. December 31, 2022.
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