related to the equipment follow. Assume that the equipment purchases are recorded gross. 1. Blossom paid cash for the equipment 25 days after the purchase, along with 5% GST (recoverable) and provincial sales tax of $3,150, both based on the purchase price. The vendor's credit terms were 1/10,n/30. 2. Blossom traded in equipment with a book value of $1,900 (initial cost $39,000 ) and paid $39,500 in cash one month after the purchase. The old equipment could have been sold for $4,000 at the date of trade but was accepted for a trade-in allowance of $5,500 on the new equipment. 3. Blossom gave the vendor a $9,500 cash down payment and a 8% note payable with blended principal and interest payments of $17.750 each, due at the end of each of the next two years. Click here to view Table A A - PRESENT VALUE OF AN OROINARY ANNUITY OF 1 Prepare the general journal entries to record the acquisition and the subsequent payment, including any notes payable. In each of the three independent cases above. For item 3, use a table, fnancial calculator, or Excel. (Credit account titics are dutomatically indented when the amount is entered. Do not indent manuolly if no entry is required, select "No Entry" for the account tities and entar O for the amounts. List all debit entries before cedit entries. Round foctor values to 5 decimol ploces, es. 1.25124 and finel answers to o decimal ploces, e3. 5.275. No. Account Titles and Explanation Debit Credit 1. Equipment cosh G) Hectivtie (Rurchase of equipment on account) (Payment on account) 2. (tho record exchange of equipment) (Pormert on account) 2 (Purchase of equipment for cash and a note paryable) Eist Rarment on the Note Inerentiogersit Koten foride 6022 (To iecord inutalmert peyment on note) Second Payment on the Note Interest Expense 2738.23 Notes Payable 690022 9750 cash related to the equipment follow. Assume that the equipment purchases are recorded gross. 1. Blossom paid cash for the equipment 25 days after the purchase, along with 5% GST (recoverable) and provincial sales tax of $3,150, both based on the purchase price. The vendor's credit terms were 1/10,n/30. 2. Blossom traded in equipment with a book value of $1,900 (initial cost $39,000 ) and paid $39,500 in cash one month after the purchase. The old equipment could have been sold for $4,000 at the date of trade but was accepted for a trade-in allowance of $5,500 on the new equipment. 3. Blossom gave the vendor a $9,500 cash down payment and a 8% note payable with blended principal and interest payments of $17.750 each, due at the end of each of the next two years. Click here to view Table A A - PRESENT VALUE OF AN OROINARY ANNUITY OF 1 Prepare the general journal entries to record the acquisition and the subsequent payment, including any notes payable. In each of the three independent cases above. For item 3, use a table, fnancial calculator, or Excel. (Credit account titics are dutomatically indented when the amount is entered. Do not indent manuolly if no entry is required, select "No Entry" for the account tities and entar O for the amounts. List all debit entries before cedit entries. Round foctor values to 5 decimol ploces, es. 1.25124 and finel answers to o decimal ploces, e3. 5.275. No. Account Titles and Explanation Debit Credit 1. Equipment cosh G) Hectivtie (Rurchase of equipment on account) (Payment on account) 2. (tho record exchange of equipment) (Pormert on account) 2 (Purchase of equipment for cash and a note paryable) Eist Rarment on the Note Inerentiogersit Koten foride 6022 (To iecord inutalmert peyment on note) Second Payment on the Note Interest Expense 2738.23 Notes Payable 690022 9750 cash
