Assume that a machine was purchased for $51,200. Cash - 15479

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QUESTION 1: Assume that a machine was purchased for $51,200. Cash of $18,700 was paid, and a four-year, 8% note payable was signed for the balance.

 

Prepare the horizontal model, to show the equal annual payments of principal and interest due at the end of each year (+for increase, - for decrease and NE for no effect).

 

YEAR    ASSESTS      LIABILITIES      OE            NET IN.       REV.          EXP

1          ?                      ?                      ?          ?                      ?          ?

2          ?                      ?                      ?          ?                      ?          ?

3          ?                      ?                      ?          ?                      ?          ?         

4          ?                      ?                      ?          ?                      ?          ?

 

 

QUESTION 2:

Assume that a machine was purchased for $51,200. Cash of $18,700 was paid, and a four-year, 8% note payable was signed for the balance.

 

 Record the journal entries, to show the equal annual payments of principal and interest due at the end of each year.

 

 

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Pleaase dow

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