Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following transactions related to a machine purchased by Ashkar Company this year: March 1 Purchased the machine at an invoice price of $ 2

The following transactions related to a machine purchased by Ashkar Company this year:
March 1 Purchased the machine at an invoice price of $21,000; pa1d $6,000 cash and $1gned a note for the batance, payable on October 1 of this, year, with annual interest at a rate of 6 percent.
March 3 Paid freight of $1,000.
March 5 Paid installation costs of $2,500.
October 1 paid the balance due plus the related interest.
December 31 Recorded straight-line depreciation on the machine based on an estimated useful life of 10 years and an estimated residual value of $4,000.
Required:
Indicate the accounts affected and the amount of the effect of each transaction (March 1,3,5, and October 1) on the accounting equation. (Enter any decreases to account balances with a minus sign. Round the final answers to the nearest whole dollar.)
\table[[Date,Assets,,=,Liabiliti,,+,,Shareholders' Equity],[March 1,Machinery,21,000,=,Short term note payable,15,000,+,,],[,Cash,(6,000),=,2,,+,,],[March 3,Machinery,1,000,=,,,+,,],[\table[[2],[2]],Cash,(1,000),=,,,+,,],[March 5,Machinery,2,500,=,20,,+,,],[,Cash,(2,500),=,5120,,+,,],[October 1,Cash,15,900,=,Short term note payable,(15,000),+,Cash,(15,900)
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting Chapters 1-13

Authors: John Price, M. David Haddock, Michael Farina

15th Edition

125999516X, 9781259995163

More Books

Students also viewed these Accounting questions

Question

How does Disney try to redress prejudice and discrimination?

Answered: 1 week ago