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Sandhill Engineering Corporation purchased conveyor equipment with a list price of $9,200. Presented below are three independent cases related to the equipment. (a) Sandhill paid

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Sandhill Engineering Corporation purchased conveyor equipment with a list price of $9,200. Presented below are three independent cases related to the equipment. (a) Sandhill paid cash for the equipment 8 days after the purchase. The vendor's credit terms are 2/10, n/30. Assume that equipment purchases are initially recorded gross. (b) Sandhill traded in equipment with a book value of $1,800 (initial cost $8,800 ), and paid $8,700 in cash one month after the purchase. The old equipment could have been sold for $400 at the date of trade. (The exchange has commercial substance.) (c) Sandhill gave the vendor a $11,800 zero-interest-bearing note for the equipment on the date of purchase. The note was due in one year and was paid on time. Assume that the effective-interest rate in the market was 10%. Prepare the general journal entries required to record the acquisition and payment in each of the independent cases above. (Round present value foctor calculations to 5 decimal places, eg. 1.25124 and final answers to 0 decimal places, eg. 5,275. Credit account titles are outomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount titles and enter O for the amounts.) Credit Accounts Payable (To record the purchase of equipment on account) \begin{tabular}{l} Accounts Payable \\ \hline Cash \\ \hline \end{tabular} 9200 Equipenent (To record the payment on account.) (b) Equigment 9100 Loss on Disposal of Equipmerit 1400 Accumulated Deareciation-Equipment 7000 Accounts Payable Accumulated Depreciation-Equipment 7000 Accounts Payable Equipment (To record the purchase of equipment on account.) Accounts Payable 8700 Cash (To record the payment on account.) (c) Equipment Discount on Notes Payable Notes Payable (To record the purchase of equipment with a note.) Interest Expense extbook and Media 5t of Accounts Attempts: unlimited

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