Question
12/31/2019 Sold Equipment that has an cost of $475,000;and accumulated depreciation of$225,000 The company receivedin exchange a Note which requires 6 annual payments of $50,000
12/31/2019 Sold Equipment that has an cost of $475,000;and accumulated depreciation of$225,000
The company receivedin exchange a Note
which requires 6 annual payments of $50,000
The first payment occurs 12/31/19.
The stated rate of interest for the note is 6%.
What are the journal entries on 12/31/2019 and 12/31/2020 for both the seller and the purchaser?
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Financial Accounting
Authors: Jamie Pratt, Michael F Peters
11th Edition
1119745322, 978-1119745327
