Following are three separate cases. Case 1. Equipment with a list price...
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Following are three separate cases. Case Equipment with a list price of $ is purchased on account; terms are n Payment is made within the discount period. Case Equipment with a list price of $ is purchased on account; terms are n Payment is made after the discount period. Any purchase discounts lost are recorded as interest expense. Case Equipment listed at $less a discount for cash purchases is purchased for cash. To take advantage of this discount, the company simultaneously borrowed $ from a bank by issuing a day, note, which is paid in full with interest at its maturity date. For Case and Case prepare journal entries for a equipment acquisition, and b cash payment. For Case record the entry for a the purchase of equipment for cash and for b the payment of the note at maturity. Note: Do not record the entry for issuance of the note.
Following are three separate cases.
Case Equipment with a list price of $ is purchased on account; terms are n Payment is made within the discount period.
Case Equipment with a list price of $ is purchased on account; terms are n Payment is made after the discount period. Any purchase discounts lost are recorded as interest expense.
Case Equipment listed at $less a discount for cash purchases is purchased for cash. To take advantage of this discount, the company simultaneously borrowed $ from a bank by issuing a day, note, which is paid in full with interest at its maturity date.
For Case and Case prepare journal entries for a equipment acquisition, and b cash payment.
For Case record the entry for a the purchase of equipment for cash and for b the payment of the note at maturity.
Note: Do not record the entry for issuance of the note.
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You can see the logs in the Dashboard.