Sabonis Cosmetics Co. purchased machinery on December 31, 2014, paying ($50),000 down and agreeing to pay the
Question:
Sabonis Cosmetics Co. purchased machinery on December 31, 2014, 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, 2014.
(d) December 31, 2017.
(b) December 31, 2015.
(e) December 31, 2018.
(c) December 31, 2016.
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To solve this problem we need to account for the purchase of the machinery and the subsequent pa...View the full answer
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Related Book For 
Intermediate Accounting IFRS Edition
ISBN: 9781118443965
2nd Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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