Answer:
(a)
Particulars | Debit ($) | Credit ($) |
Equipment | $9,200 | |
Accounts payable | $9,200 | |
( To record the purchase of equipment on account ) | ||
Accounts payable | $9,200 | |
Cash (9200-184) | $9,016 | |
Equipment (9200*2%) | $184 | |
( (To record the payment on account ) |
(b)
Particulars | Debit ($) | Credit ($) |
Equipment (New ) (9800+300) | $10,100 | |
Loss on Disposal of Equipment (2200-300) | $1,900 | |
Accumulated Depreciation Equipment (7400-2200) | $5,200 | |
Accounts Payable | $9,800 | |
Equipment (Old) | $7,400 | |
(To record the purchase of equipment on account.) | ||
Accounts Payable | $9,800 | |
Cash | $9,800 | |
(To record the payment on account.) |
(c)
Particulars | Debit ($) | Credit ($) |
Equipment (11000*0.91743) | $10,091.73 | |
Discount on Notes Payable (11000-10091.73) | $908.27 | |
Notes Payable | $11,000 | |
(To record the purchase of equipment with a note) | ||
Interest Expense | $10,091.73 | |
Notes Payable | $11,000 | |
Discount on Notes Payable | $10,091.73 | |
Cash | $11,000 | |
(To record the payment of the note) |
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