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On September 30, 2017 Coldwater Corporation purchased equipment for $1,230,000. The equipment was purchased with a $120,000 down payment and a three-year, 3%, $1,110,000 bank

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On September 30, 2017 Coldwater Corporation purchased equipment for $1,230,000. The equipment was purchased with a $120,000 down payment and a three-year, 3%, $1,110,000 bank loan for the balance. The terms provide for payment of the bank loan with quarterly fixed principal payments of $92,500, plus interest, starting on December 31. Coldwater has a November 30 year end and records adjusting entries annually. Record the accrual of interest expense on November 30, 2017. (Round answers to the nearest whole dollar, eg. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Nov. 30 Interest Expense Interest Payable Record the first two instalment payments, on December 31, 2017, and March 31, 2018. (Round answers to the nearest whole dollar, eg. 5,250. Credit account titles are automatically indented when the amount is entered. Do not Indent manually.) Debit Credit Date Account Titles and Explanation Dec 31, 2017 Bank Loan Payable 92500 Interest Expense Interest Payable Cash I Mar. 31, 2018 Bank Loan Payable 92500 Interest Expense Cash Activat Go to Se Record the accrual of interest expense on November 30, 2017 and first two instalment payments, on December 31, 2017, and March 31, 2018 assuming that the terms provide for quarterly blended principal and interest payments of $97,071, rather than fixed principal payments of $92,500, plus interest. (Round answers to the nearest whole dollar, eg. 5,250. Credit account titles are automatically Indented when the amount is entered. Do not Indent manually) Debit Credit Date Account Titles and Explanation Nov. 30, 2017 Interest Expense Interest Payable Dec 31, 2017 Bank Loan Payable Interest Expense Interest Payable 97071 Cash Mar. 31, 2018 Bank Loan Payable Interest Expense Activate Wi 30 Settings 97071 Cash

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