Question
Oriole Corporation purchased a computer on December 31, 2019, for $111,300, paying $31,800 down and agreeing to pay the balance in five equal installments of
Oriole Corporation purchased a computer on December 31, 2019, for $111,300, paying $31,800 down and agreeing to pay the balance in five equal installments of $15,900 payable each December 31 beginning in 2020. An assumed interest rate of 9% is implicit in the purchase price.
(A) THIS ONE IS CORRECT
Prepare the journal entry at the date of purchase. December 31 2019
| Date | Account Titles and Explanation | Debit | Credit |
| December 31, 2019 | Equipment | 93645.44 | |
| Discount on Notes Payable | 17654.56 | ||
| Notes Payable | 79500 | ||
| Cash | 31800 |
(B) THIS ONE I NEED THE ANSWER TO NOTES PAYABLE AND DISCOUNT ON NOTES PAYABLE
| Date | Account Titles and Explanation | Debit | Credit |
| December 31, 2020 | Interest expense | 5566.09 | |
| Notes payable | ? | ||
| Discount on Notes payable | ? | ||
| Cash 15900 |
(C) THIS ONE I NEED THE ANSWER TO NOTES PAYABLE AND DISCOUNT ON NOTES PAYABLE AND CASH
Prepare the journal entry at December 31, 2021, to record the payment and interest (effective-interest method employed).
| Date | Account Titles and Explanation | Debit | Credit |
| December 31, 2021 | Interest Expense | 4636.04 | |
| Notes Payable | ? | ||
| Discount on Notes Payable | ? | ||
| Cash ? |
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Fundamentals of Ethics for Scientists and Engineers
Authors: Edmund G. Seebauer, Robert L. Barry
1st Edition
9780195698480, 195134885, 195698487, 978-0195134889
