ae10-11 - 9,908 Discount on note payable ($10,800 - $9,908)...

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Solution AE10-11 Description/Account Debit Credit (a) Equipment 21,450 Accounts payable 21,450 Accounts payable 21,450 Cash 21,021 Equipment ($21,450 × 0.02) 429 (b) Equipment (new) * 16,139 Accumulated depreciation 8,580 Loss on disposal of equipment ** 2,460 Accounts payable 15,739 Equipment (old) 11,440 Accounts payable 15,739 Cash 15,739 (c) Equipment ($10,800 × 0.91743)
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Unformatted text preview: 9,908 Discount on note payable ($10,800 - $9,908) 892 Note payable 10,800 Note payable 10,800 Interest expense 892 Cash 10,800 Discount on note payable 892 ** Cost $11,440 Accumulated depreciation 8,580 Book value 2,860 Fair market value 400 Loss $2,460 * Cost ($15,739 + $400) $16,139...
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This note was uploaded on 11/30/2011 for the course ACC 101 taught by Professor B during the Spring '09 term at CUNY Baruch.

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