On January 1, 2013, WT Purchased a New Machine to Be

question 26

Essay

On January 1, 2013, WT purchased a new machine to be used in the business. It paid $10,000 cash down payment and signed an interest-bearing note payable that required it to make three equal annual payments of $5,000 each (including principal and interest). The first payment will be made on December 31, 2013. Assume an 11 percent per annum interest rate, and use the net approach.
(a) Give the entry on January 1, 2013, to record the acquisition:
(b) Give the entry on December 31, 2013, to record the first payment on the note payable:

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Definitions:

Organic Extraction

A separation process for removing one or more compounds from a mixture using an organic solvent.

Neutral Organic

Organic compounds that are neither acidic nor basic, often characterized by their lack of charged functional groups.

Aqueous Layer

The aqueous layer is the water-based layer that forms during the separation of mixtures in liquid-liquid extraction, often distinguishable from organic layers due to its density and solubility properties.

Organic Layer

A portion of soil rich in organic matter, found at the surface, contributing to soil fertility and plant growth.