What is the impact on the accounting equation

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Question - On December 1st, 2010, you buy a piece of equipment for $400,000. You paid $80,000 cash and issued a five-year, 4% note payable for the remainder. The principal is due on November 30, 2014 and interest is payable every May 31 and November 30th of the year. What is the impact on the accounting equation of the journal entry to be made on December 31st, 2010 to record the interests?

Reference no: EM133101220

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