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The following transactions related to a machine purchased by Ashkar Company this year: March 1 Purchased the machine at an invoice price of $10,180; paid $8,180 cash and signed a note for the balance, payable on October 1 of this year, with annual interest at a rate of 12 percent. March 3 Paid freight of $340. March 5 Paid installation costs of $565. October 1 Paid the balance due plus the related interest. December 31 Recorded straight-line depreciation on the machine based on an estimated useful life of 10 years and an estimated residual value of $1,485. Required: 1. Indicate the accounts affected and the amount of the effect of each transaction (March 1, 3, 5, and October 1) on the accounting equation. (Enter any decreases to account balances with a minus sign. Do not round intermediate calculations. Round the final answers to the nearest whole dollar) Date Assets Liabilities Shareholders' Equity

The following transactions related to a machine purchased by Ashkar Company this year: March 1 Purchased the machine at an invoice price of $10,180; paid $8,180 cash and signed a note for the balance, payable on October 1 of this year, with annual interest at a rate of 12 percent. March 3 Paid freight of $340. March 5 Paid installation costs of $565. October 1 Paid the balance due plus the related interest. December 31 Recorded straight-line depreciation on the machine based on an estimated useful life of 10 years and an estimated residual value of $1,485. Required: 1. Indicate the accounts affected and the amount of the effect of each transaction (March 1, 3, 5, and October 1) on the accounting equation. (Enter any decreases to account balances with a minus sign. Do not round intermediate calculations. Round the final answers to the nearest whole dollar) Date Assets Liabilities Shareholders' Equity

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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7.57 The following transactions related to a machine purchased by Ashkar Company this year: March 1 March 3 March 5 Paid installation costs of $565. October 1 Paid the balance due plus the related interest. December 31 Recorded straight-line depreciation on the machine based on an estimated useful life of 10 years and an estimated residual value of $1,485. Required: 1. Indicate the accounts affected and the amount of the effect of each transaction (March 1, 3, 5, and October 1) on the accounting equation. (Enter any decreases to account balances with a minus sign. Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) Date March 1 Purchased the machine at an invoice price of $10,180; paid $8,180 cash and signed a note for the balance, payable on October 1 of this year, with annual interest at a rate of 12 percent. Paid freight of $340. March 3 March 5 October 1 Assets Acquisition cost Liabilities 2. Compute the acquisition cost of the machine. (Round the final answer to the nearest whole dollar.) Shareholders' Equity
Transcribed Image Text:7.57 The following transactions related to a machine purchased by Ashkar Company this year: March 1 March 3 March 5 Paid installation costs of $565. October 1 Paid the balance due plus the related interest. December 31 Recorded straight-line depreciation on the machine based on an estimated useful life of 10 years and an estimated residual value of $1,485. Required: 1. Indicate the accounts affected and the amount of the effect of each transaction (March 1, 3, 5, and October 1) on the accounting equation. (Enter any decreases to account balances with a minus sign. Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) Date March 1 Purchased the machine at an invoice price of $10,180; paid $8,180 cash and signed a note for the balance, payable on October 1 of this year, with annual interest at a rate of 12 percent. Paid freight of $340. March 3 March 5 October 1 Assets Acquisition cost Liabilities 2. Compute the acquisition cost of the machine. (Round the final answer to the nearest whole dollar.) Shareholders' Equity
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