Intermediate Accounting: E10-5 On Aug 2, 2010 Darmow Corporation purchased

Intermediate Accounting

E10-5 Determination of Acquisition Cost
On Aug 2, 2010 Darmow Corporation purchased a new machine on a deferred payment basis. It made down payment of 1,000 and will make four monthly installments of 2,500 each beginning on Sep 1, 2010. The cash equivalent price of the machine was 9,5000. Darmow incurred and paid installation costs amounting to 300.
Prepare the journal entry amounting the acquisition of the machine
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