Alka-Seltzer Inc. has decided to purchase some new equipment. Alka-Sletzer can only pay $10,000 of the...
Alka-Seltzer Inc. has decided to purchase some new equipment. Alka-Sletzer can only pay $10,000 of the $200,000 purchase price and must finance the remainder on a long term note. The credit will go to the?
Homework Answers
answer : the credit will go to the 190,000 notes payable
explanation
equipment price = 200,000
partial payment = 10000
remainder on a long term note = 200,000- 10,000= 190,000
here the Alka seltzer inc must finance the amount of 190,000 after the partial payment of 10,000
journal entry
| date | general journal | debit | credit |
| equipment | 200,000 | ||
| cash | 10000 | ||
| notes payable | 190,000 | ||
| to record of purchase of asset |
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