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On 1 September 2019, Syarikat Hijau ordered a machine to be used in its production process. Syarikat Hijau paid RM10,000 as down payment on
On 1 September 2019, Syarikat Hijau ordered a machine to be used in its production process. Syarikat Hijau paid RM10,000 as down payment on 15 September 2019 and took delivery of the machine on 30 September 2019. The balance of RM50,000 will be paid in five equal installments beginning 1 September 2020. Required: a) Determine the cost of machine. b) Determine when Syarikat Hijau should recognize the machine as its asset. c) Prepare the journal entries for 2019 with regard to the purchase of the machine by Syarikat Hijau.
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a The cost of the machine can be calculated as the total amount paid including the down payment and the balance to be paid in installments Down payment made on 15 September 2019 RM10000 Balance to be ...
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
