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Waterway Engineering Corporation purchased conveyor equipment with a list price of $ 9 , 0 0 0 . Presented below are three independent cases related
Waterway Engineering Corporation purchased conveyor equipment with a list price of $ Presented below are three independent cases related to the equipment.
a Waterway paid cash for the equipment days after the purchase. The vendor's credit terms are Assume that equipment purchases are initially recorded gross.
b Waterway traded in equipment with a book value of $initial cost $ and paid $ in cash one month after the purchase. The old equipment could have been sold for $ at the date of trade. The exchange has commercial substance.
c Waterway gave the vendor a $ zerointerestbearing note for the equipment on the date of purchase. The note was due in one year and was paid on time. Assume that the effectiveinterest rate in the market was
Prepare the general journal entries required to record the acquisition and payment in each of the independent cases above. Round present value factor calculations to decimal places, e and final answers to decimal places, eg Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter for the amounts. List all debit entries before credit entries.
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