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(a) Prepare the journal entry(ies) at the date of purchase. (b) Prepare the journal entry(ies) at the end of the first year to record the
(a) | Prepare the journal entry(ies) at the date of purchase. |
(b) | Prepare the journal entry(ies) at the end of the first year to record the payment and interest, assuming that the company employs the effective-interest method. |
(c) | Prepare the journal entry(ies) at the end of the second year to record the payment and interest. |
(d) | Assuming that the equipment had a 10-year life and no salvage value, prepare the journal entry necessary to record depreciation in the first year. (Straight-line depreciation is employed.) |
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