Hemingway Company purchases equipment by issuing a 7-year, $210,000 non-interest-bearing note, when the market rate for this type of note is 7%. Hemingway will pay off the note with equal payments to be made at the end of each year.Required: Prepare the journal entry to record Hemingway’s acquisition of the equipment.

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Asked Oct 13, 2019
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Hemingway Company purchases equipment by issuing a 7-year, $210,000 non-interest-bearing note, when the market rate for this type of note is 7%. Hemingway will pay off the note with equal payments to be made at the end of each year.
Required:
 

Prepare the journal entry to record Hemingway’s acquisition of the equipment.

 

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Companies acquire assets either through cash or non-cash means. In the case of non-cash means, assets are acquired, and com...

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