Sabonis Cosmetics Co. purchased machinery on December 31, 2021, paying $50,000 down and agreeing to pay the

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Sabonis Cosmetics Co. purchased machinery on December 31, 2021, paying $50,000 down and agreeing to pay the balance in four equal installments of $40,000 payable each December 31. An assumed interest rate 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, 2021.

b. December 31, 2022.

c. December 31, 2023.

d. December 31, 2024.

e. December 31, 2025.

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Intermediate Accounting IFRS

ISBN: 9781119607519

4th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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Question Posted: Aug 02, 2021 07:37 AM

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Sabonis Cosmetics Co. purchased machinery on December 31, 2021, paying $50,000 down and agreeing to pay the

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a December 31 2021 Debit Machinery Asset 90000 Credit Cash 50000 Credit Notes Payab...View the full answer

Intermediate Accounting IFRS

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