Solution-Prepare the journal entry for the acquisition of

Prepare the journal entry for the acquisition of equipment

Reference no: EM132802200

Problem - Compound Interest and Journal Entries - Benenson Company bought some equipment on a contract entailing a €200,000 cash down payment and an €800,000 lump sum to be paid at the end of 4 years. The same equipment can be purchased for €788,000 cash.

Required -

1. Prepare the journal entry for the acquisition of the equipment.

2. Prepare journal entries at the end of each of the first 2 years. Ignore entries for depreciation.

Reference no: EM132802200

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Prepare the journal entry for the acquisition of equipment

Reference no: EM132802200

Reference no: EM132802200

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