Question
Blue Spruce Corporation bought a computer on December 31, 2017, paying $25,000 down with a further $83,000 payment due on December 31, 2020. An interest
Blue Spruce Corporation bought a computer on December 31, 2017, paying $25,000 down with a further $83,000 payment due on December 31, 2020. An interest rate of 8% is implicit in the purchase price. Blue Spruce uses the effective interest method and has a December 31 year end. Blue Spruce prepares financial statements in accordance with ASPE. What is the journal entry at the purchase date?
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Auditing Assurance And Risk
Authors: W. Robert Knechel, Steve Salterio, Brian Ballou
3rd Edition
0324313187, 9780324313185
