Benenson Company bought some equipment on a contract entailing a 200,000 cash down payment and an 800,000
Question:
Benenson Company bought some equipment on a contract entailing a €200,000 cash down payment and an €800,000 lump sum to be paid at the end of 4 years.
The same equipment can be purchased for €788,000 cash.
1. Prepare the journal entry for the acquisition of the equipment.
2. Prepare journal entries at the end of each of the first 2 years. Ignore entries for depreciation.
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1 Equipment 788000 Discount on note payable 212000 Cash 200000 Contract payable or note payable 8000...View the full answer
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Related Book For 
Introduction to Financial Accounting
ISBN: 978-0133251036
11th edition
Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick
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