Mac, Inc purchased equipment on December 1, 2011 in exchange for ...

[Cooldude101]

Mac, Inc purchased equipment on December 1, 2011 in exchange for a 4-month, 9, 120,000 note. The equipment has an estimated useful life of four years and 0 residual value.
 
  Record (a) the purchase of the equipment December 1, 2011 and the adjusting entries for (b) straight-line depreciation and (c) interest for the month-ended December 31, 2011 in the T-accounts provided.
 
   Equipment
 
   Notes payable
 
   Depreciation expense
 
   Accumulated depreciation
 
   Interest payable
 
   Interest expense

Question 2

Most companies will not take a purchase discount, because 1 or 2 discounts are insignificant.
 a. True
  b. False
 
   Indicate whether the statement is true or false

[Ksh22]

Answer to Question 1

Equipment
(a) 120,000

Notes payable
120,000 (a)

Depreciation expense
(b) 2,500

Accumulated depreciation
2,500(b)

Interest payable
900 (c)

Interest expense
(c) 900

Answer to Question 2

False

[Cooldude101]

Thanks for the timely response, appreciate it

[Dominic]

YES! Correct, THANKS for helping me on my review