Question
abonis Cosmetics Co. purchased machinery on December 31, 2013, paying $57,100 down and agreeing to pay the balance in four equal installments of $41,040 payable
abonis Cosmetics Co. purchased machinery on December 31, 2013, paying $57,100 down and agreeing to pay the balance in four equal installments of $41,040 payable each December 31. An assumed interest of 9% is implicit in the purchase price. Prepare the journal entries that would be recorded for the purchase and for (1) the payments and (2) interest on the following dates. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
A. December 31, 2013.
B. December 31, 2014
C. December 31, 2015.
D. December 31, 2016.
E. December 31, 2017.
Find the debit or credit for each acc title and explanation.
NO. | Acc titles and explanation | debit | credit |
a | Machinary | ||
Discount on notes payable | |||
cash | |||
notes payable | |||
B(1) | notes payable | ||
cash | |||
B(2) | Interest expense | ||
discount on notes payable | |||
c(1) | Notes payable | ||
cash | |||
c(2) | Interest expense | ||
discount on notes payable | |||
d(1) | Notes payable | ||
cash | |||
d(2) | interest expense | ||
discount on notes payable | |||
e(1) | notes payable | ||
cash | |||
e(2) | interest expense | ||
discount on notes payable |
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