Problem 6. Equipment Acquisitions

UMPI Corporation purchased conveyor equipment with a list price of $15,000. Presented below are three independent cases related to the equipment. (Round to the nearest dollar.)

Please Note: I understand that I am to submit only one question per post. However, this problem only makes sense if all of the questions are answered by the same CHEGG EXPERT.

Thank You

Instructions: Prepare the general journal entries required to record the acquisition and payment in each of the independent cases below.

6.1 UMPI paid cash for the equipment 8 days after the purchase. The vendors credit terms are 2/10, n/30. Assume that equipment purchases are initially recorded gross.

6.2 UMPI traded in equipment with a book value of $2,000 (initial cost $8,000), and paid $8,500 in cash. The old equipment could have been sold for $1,400 at the date of trade. (The exchange did have commercial substance.)

6.3 UMPI signed an interest-bearing note for the equipment on the date of purchase. The note was due in one year and was paid on time.