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    fayfay1988's Avatar
    fayfay1988 Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Apr 10, 2007, 05:16 PM
    Journal entries
    On Jan 1, 2000, the Olivares Corporation purchased a packaging and labeling machine. Olivares paid 25,000 down and signed a noninterest-bearing note requiring six annual installments of 10,000 to be paid on each Dec 31 beginning Dec 31, 2000. The fair value of the machine is not determinable. An interest rate of 8% properly reflects the time value of money in this situation.

    Prepare the journal entry to record the acquisition for the machine.


    AND

    Prepare the journal entry to record the first payment on Dec 31, 2000


    Thanks A lot
    Michellerenee's Avatar
    Michellerenee Posts: 102, Reputation: 7
    Junior Member
    		  
    #2

    Apr 10, 2007, 09:03 PM
    Quote Originally Posted by fayfay1988
    On Jan 1, 2000, the Olivares Corporation purchased a packaging and labeling machine. Olivares paid 25,000 down and signed a noninterest-bearing note requiring six annual installments of 10,000 to be paid on each Dec 31 beginning Dec 31, 2000. the fair value of the machine is not determinable. An interest rate of 8% properly reflects the time value of money in this situation.

    Prepare the journal entry to record the acquisition for the machine.


    AND

    Prepare the journal entry to record the first payment on Dec 31, 2000


    Thanks Alot
    I didn't think this was a homework site, but I could be wrong
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