Fold and Hold Corporation Purchased a Machine Which Had a Current

question 35

Short Answer

Fold and Hold Corporation purchased a machine which had a current cash equivalent cost of $38,971 on January 1,2010.Fold and Hold paid cash of $10,000 and signed an interest-bearing note for the balance,payable in six equal annual installments on each December 31 beginning with December 31,2010.The note specified a 10% interest rate on the unpaid balance.
Requirements:
A.Prepare the journal entry to record the purchase on January 1, 2010 (round to the nearest dollar).
B.Prepare the entry to record the first installment payment on December 31, 2010 (round to the nearest dollar).Assume that no adjusting entries have been made during the year.

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Definitions:

Careless Employees

Workers who show a lack of attention or concern for accuracy, potentially leading to mistakes, inefficiencies, or safety issues in the workplace.

Employee Entitlements

Benefits and rights guaranteed to employees by law or company policy, such as leave entitlements and workplace protections.

Gender Discrimination

The unfair or prejudicial treatment of individuals based on their gender, impacting opportunities and outcomes.

Corporate Leaders

Individuals at the highest level of an organization who are responsible for strategic decisions and overall operations.