journal entries:

at the time of September 1st

1. On September 1, Mavtech borrowed $72,000 from a bank. The interest rate on the loan is 10% per annum. Interest is payable every year, the first interest payment being due for payment on September 1, 2016. The principal amount that was borrowed is due in one single repayment on September 1, 2019.

2. On September 1, Mavtech acquired furniture and fixtures for $14,000 and made a down payment of $3,000. The remaining payment will be made in October. The furniture and fixtures have an estimated useful life of 5 years, at the end of which they are expected to be sold for $2,000.

3. 1. On September 1, Mavtech acquired 4 cash registers for $6,000 in cash. This equipment has a useful life of 3 years after which they are expected to be sold for $600.