Bian Inc. financed the purchase of equipment costing $85,000 on January 1, 2014, using a note payable.
Question:
Instructions
(a) Prepare the debt amortization schedule for the note over its term.
(b) Prepare the journal entry(ies) that are required for the year ended December 31, 2014, and the first instalment payment on January 1, 2015.
(c) Prepare the statement of financial position presentation of the note at December 31, 2014. (Include both the current and long-term portions.)
(d) Prepare the statement of financial position presentation of the note at December 31, 2015.
(e) Redo part (c) assuming that the equipment was purchased on July 1, 2014, and the payments are due beginning July 1, 2015.
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Related Book For
Intermediate Accounting
ISBN: 978-1118300855
10th Canadian Edition Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
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