Question
On January 1, 2019, Garcia Corporation purchased a truck by issuing an $80,000, 4-year, non-interesting bearing note to Equinox Inc. The note has a present
On January 1, 2019, Garcia Corporation purchased a truck by issuing an $80,000, 4-year, non-interesting bearing note to Equinox Inc. The note has a present value of $54,641. The market rate of interest for obligations of this nature is 10%.
Instructions:
- Record the journal for the purchase of the equipment.
- Record the entry on Dec. 31, 2019 for interest.
- Record the entry on De 31, 2020 for interest.
| Date |
| Debit | Credit |
| Jan. 1 |
|
|
|
| 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dec. 31 |
|
|
|
| 2019 |
|
|
|
|
|
|
|
|
| Dec. 31 |
|
|
|
| 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Care And Counsel For Combat Trauma Training Program Workbook For Audit Only
Authors: Cru Military, American Association Of Christian Counselors, Light University, Karen D Watkins
1st Edition
