Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help with the corrections DueNorth Mining Inc. purchased some crushing equipment on May 1, 2020 for $308,000. A down payment of $28,000 was required
please help with the corrections DueNorth Mining Inc. purchased some crushing equipment on May 1, 2020 for $308,000. A down payment of $28,000 was required and the remainder was financed with a installment on payable over 5 years with payments made on a quarterly basis. The quarterly payments required are 516,714 and include both interest and principal. The following is an extract from the loan amortization table the supplier provided to DueNorth : Ending loan Payment Dates 9/30/20 12/31/20 3/31/21 6/30/21 9/30/21 12/31/21 Beginning loan balance $280,000 268,186 256,165 243,934 231,489 218,826 Payment Interest $16,714 $4,900 16,714 4,693 16,714 4,483 16,714 4,269 16,714 4,051 16,714 3,829 Principal $11,814 12,021 12,231 12,445 12,663 12,885 balance $268,186 256,165 243,934 231.489 218,826 205,941 Your answer is partially correct. Try again. Prepare the journal entries for the purchase of the equipment and the first 2 quarterly payments in 2020 (use Long-Term Loan Payable account). (Credit account titles are automatically Indented when amount is entered. Do not indent manually. Ir no entry is required, select "Me Entry for the accounts and enter for the amounts.) Date July 1, 2020 Account Titles and Explanation crushing Equipment Cash Nate Davale A nicion of the epare the journal entries for the purchase of the equipment and the first 2 quarterly payments in 2020 (use Long-Term Loan Payable account). (Credit counte r Indented when amount is entered. Do not Indent manually. If no entry is required, select "No Entry for the accountries and enter for the amount) Date Account Titles and Explanation July 1, 2020 Crushing Equipment I Cash | Notes Payable Sept. 30, 2020 Interest Expense Notes Payable Cash Dec. 31, 2020 Interest Expense Notes Payable T Cash
please help with the corrections
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