The following transactions related to a machine purchased by Ashkar Company this year: March 1 Purchased the machine at an invoice price of $10,180; paid $8,180 cash and signed a note for the balance, payable on October 1 of this year, with annual interest at a rate of 12 percent. March 3 Paid freight of $340. March 5 Paid installation costs of $565. October 1 Paid the balance due plus the related interest. December 31 Recorded straight-line depreciation on the machine based on an estimated useful life of 10 years and an estimated residual value of $1,485. Required: 1. Indicate the accounts affected and the amount of the effect of each transaction (March 1, 3, 5, and October 1) on the accounting equation. (Enter any decreases to account balances with a minus sign. Do not round intermediate calculations. Round the final answers to the nearest whole dollar) Date Assets Liabilities Shareholders' Equity

The following transactions related to a machine purchased by Ashkar Company this year: March 1 Purchased the machine at an invoice price of $10,180; paid $8,180 cash and signed a note for the balance, payable on October 1 of this year, with annual interest at a rate of 12 percent. March 3 Paid freight of $340. March 5 Paid installation costs of $565. October 1 Paid the balance due plus the related interest. December 31 Recorded straight-line depreciation on the machine based on an estimated useful life of 10 years and an estimated residual value of $1,485. Required: 1. Indicate the accounts affected and the amount of the effect of each transaction (March 1, 3, 5, and October 1) on the accounting equation. (Enter any decreases to account balances with a minus sign. Do not round intermediate calculations. Round the final answers to the nearest whole dollar) Date Assets Liabilities Shareholders' Equity

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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