Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I posted this question before and the answer I was given is wrong Bonita Corporation purchased a computer on December 31, 2019, for $157,500, paying

image text in transcribedimage text in transcribed I posted this question before and the answer I was given is wrong

Bonita Corporation purchased a computer on December 31, 2019, for $157,500, paying $45,000 down and agreeing to pay the balance in five equal installments of s22,500 payable each December 31 beginning in 2020. An assumed interest rate of 9% is implicit in the purchase price. Your answer is partially correct. Try again. Teacher Appreciation Week 2020 Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 ................. ....Jal places, e.g. 52.75. 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 o for the amounts.) Debit Credit Date Account Titles and Explanation December 31, 2019 Equipment 132,519.38 Discount on Notes Payable 24,980.62 Cash 45000 Notes Payable 112500 SHOW LIST OF ACCOUNTS SHOW SOLUTION I INK TO TEXT Your answer is partially correct. Try again. Prepare the journal entry at December 31, 2020, to record the payment and interest (effective-interest method employed). (Round answers to 2 decimal places, e.g. 52.75. 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 o for the amounts.) Debit Credit Date Account Titles and Explanation December 31, 2020 Interest Expense T Notes Payable 1 7 876.74|| 2 25001 i Cash 22500 T Discount on Notes Paya 7876.74 aulunialilanly Muelleu Viell announL IS eller eu. DUNIUL NUCNTL Nialluany. 11 NU enlly Isleyuncu, Seleul IVU LILIY TUI Lie altuunil Lilies aliuelle U1UI Lie anniUUNILS. Date Account Titles and Explanation Debit Credit December 31, 2020 Interest Expense 7876.74 Notes Payable 22500 Teacher Appreciation Week 2020 Cash 22500 Discount on Notes Paya 7876.74 SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT Your answer is partially correct. Try again. Prepare the journal entry at December 31, 2021, to record the payment and interest (effective-interest method employed). (Round answers to 2 decimal places, e.g. 52.75. 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 o for the amounts.) Date Account Titles and Explanation Debit Credit December 31, Interest Expense 7876.74 Notes Payable 22500 TCash 22500 Discount on Notes Paya 7876.74 Click if you would like to Show Work for this question: Open Show Work

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Practices A Complete Guide

Authors: Gerardus Blokdyk

2023rd Edition

1038804450, 978-1038804457

More Books

Students also viewed these Accounting questions