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Apple Industries purchased store equipment by making a $10,000 cash down payment and signing a 2-year, $40,000, 8% note payable. The purchase was recorded as
Apple Industries purchased store equipment by making a $10,000 cash down payment and signing a 2-year, $40,000, 8% note payable.
The purchase was recorded as follows:
Store Equipment: $56,400
Cash: $10,000
Note Payable: $40,000
Interest Payable: $6,400.
Prepare the entry that should have been made at the date of acquisition.
Do not copy from chegg.
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