FULL SCREEN PRINTER VERSION 4 BACK NE Question 1 On July 31, 2016, a company purchased equipment for $153,600, paying $12,000 cash and signing a 5% note payable for the remainder. The interest and principal of the note are due on January 31, 2017 Your answer is correct. Prepare the journal entry to record the purchase of the equipment on July 31, 2016. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit July 31/16 Equipment 153600 Cash 42000 Notes Payable 111600 Your answer is partially correct. Try again. Prepare the journal entry to record the accrual of the interest at year end, November 30, 2016, assuming interest has not previously been accrued. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Round answers to the nearest whole dollar, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Nov. 30/16 Interest Expense 5580 Interest Payable 5580 SHOW LIST OF ACCOUNTS LINK TO TEXT July Curred. Try again. Prepare the journal entry to record the repayment of the interest and note on January 31, 2017. (Credit account titles are automatically indented when amount is entered Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round answers to the nearest whole dollar e.g. 5,275.) Date Account Titles and Explanation Debit Credit Jan. 31/17 Notes Payable 111600 Interest Payable 5580 Interest Expense 5580 cash SHOW LIST OF ACCOUNTS