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The following refers to a purchase of a machine by a company on January 1, 2015. Contract Price: $80,000 Interest Rate: 6% Contract Price Due
The following refers to a purchase of a machine by a company on January 1, 2015.
Contract Price: $80,000 Interest Rate: 6%
Contract Price Due On: December 31, 2017 Interest Compounded: semi-annually
The entry to record the purchase of the machine would include a:
A. | debit to machine for $80,000 | |
B. | credit to note payable for $66,960 | |
C. | debit to interest expense for 12,800 | |
D. | debit to discount for $13,040 | |
E. | debit to machine for $122,135 |
Determine interest expense to be recorded on December 31, 2015.
A. | $2,069 | |
B. | $4,258 | |
C. | $4,258 | |
D. | $2,173 | |
E. | $4,274 |
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