Mother Hips Garment Company purchased equipment on June 1 for $90000 paying $20000 cash and signing a 9% 2-month note for the remaining balance. The equipment is expected to depreciate $18000 each year. Mother Hips Garment Company prepares monthly financial statements.
Instructions
(a) Prepare the general journal entry to record the acquisition of the equipment on June 1st.
(b) Prepare any adjusting journal entries that should be made on June 30th.
(c) Show how the equipment will be reflected on Mother Hips Garment Company's balance sheet on June 30th.

Question

Quizplus · Accepted Answer

The Answer of Mother Hips Garment Company purchased equipment on June 1 for $90000 paying $20000 cash and signing a 9% 2-month note for the remaining balance. The equipment is expected to depreciate $18000 each year. Mother Hips Garment Company prepares monthly financial statements.
Instructions
(a) Prepare the general journal entry to record the acquisition of the equipment on June 1st.
(b) Prepare any adjusting journal entries that should be made on June 30th.
(c) Show how the equipment will be reflected on Mother Hips Garment Company's balance sheet on June 30th.

Mother Hips Garment Company Purchased Equipment on June 1 for $90000