Solution-Prepare journal entry to record the purchase of

Prepare journal entry to record the purchase of equipment

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Reference no: EM132521853

Question - On January 1, 2019, Billips Corporation purchased equipment having a fair value of $72,054.94 by issuing a $90,000 note, payable in three $30,000 annual installments beginning December 31, 2019.

Required - Prepare (1) the journal entry to record the purchase of the equipment, (2) a schedule to compute the annual interest expense, and (3) the journal entries to record yearly interest expense and note repayments over the life of the note.

Reference no: EM132521853

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Prepare journal entry to record the purchase of equipment

Reference no: EM132521853

Reference no: EM132521853

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