Make a journal entry for the building was purchased

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Problem 1: Make a journal entry for the following:

1) Allowance for Doubtful Accounts is estimated to be 6% of Accounts Receivable.

2) The building was purchased on 9/30/19 with a Bond issued at par value for $250 000. The bond requires semi-annual interest payments at 8%, starting on March 31, 2020.

a. record the building purchase

b. record interest on the bond that is accrued but not yet paid.

3) The building purchased in #2 will be depreciated over 25 years with an estimated salvage value of $50,000.

4) Equipment costing $30,000 was disposed on 12/31/19. The accumulated depreciation for the equipment was $25,000.

Reference no: EM132731237

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