Depreciation expense of $70,000 was included in selling and administrative expenses. A short term note payable of $20,000 was issued for cash. Equipment costing $120,000 was purchased, with $40,000 paid in cash and a long-term note payable issued for the balance.

1. DDITIONAL INFORMATION: 1. Included in the selling and administrative expenses is
depreciation expense of $70,000 2. A new short term note payable of $20,000 was issued for
cash 3. New equipment with a cost of $120,000 was purchased by paying $40,000 cash and
issuing a long-term note payable for the balance.
1. Included in the selling and administrative expenses is depreciation expense of $70,000 2. A
new short term note payable of $20,000 was issued for cash 3. New equipment with a cost of
$120,000 was purchased by paying $40,000 cash and issuing a long-term note payable for
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