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On September 30, 2017, Coldwater Corporation purchased equipment for $880,000. The equipment was purchased with a $70,000 down payment and a three-year, 4%, $810,000 bank

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On September 30, 2017, Coldwater Corporation purchased equipment for $880,000. The equipment was purchased with a $70,000 down payment and a three-year, 4%, $810,000 bank loan for the balance. The terms provide for payment of the bank loan with quarterly fixed principal payments of $67,500, plus interest, starting on December 31. Coldwater has a November 30 year end and records adjusting entries annually. Record the purchase of equipment on September 30, 2017. (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Sept. 30 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 Nov. 30 Debit Credit Record the first two instalment payments, on December 31, 2017, and March 31, 2018. (Round answers to the nearest whole dollor, 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 Interest Expense Interest Payable Cash Mar 31, 2018 Bank Loan Payable Interest Expense Cash 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 $71.968, rather than fixed principal payments of $67,500, 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.) Date Account Titles and Explanation Debit Credit Nov. 30, 2017 Interest Expense Interest Payable Dec 31, 2017 Bank Loan Payable Interest Expense Interest Payable Cash Mar. 31, 2018 Bank Loan Payable Interest Expense Activate Getting Cash

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