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Benenson Company bought some equipment on a contract entailing a 200,000 cash down payment and an 800,000 lump sum to be paid at the end

Benenson Company bought some equipment on a contract entailing a 200,000 cash down payment and an 800,000 lump sum to be paid at the end of 4 years. The same equipment can be purchased for 788,000 cash.

Prepare the journal entry for the acquisition of the equipment.

Prepare journal entries at the end of each of the first 2 years. Ignore entries for depreciation.

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