problem 2

Problem 2 On January 1, Joey, Inc. buys equipment for $10,000. Terms are 10% down the rest in 3 equal annual payments which include interest at 8%. (6% is what the bank would charge you.) The payments start December 31. Prepare an amortization schedule and all the journal entries for each year. Redo Joey with 10% down interest only payments of 2% for 3 years. Prepare an amortization schedule and all the journal entries for each year. Redo Joey with 10% down and 3 equal payments that include interest at 2%. Prepare an amortization schedule and all the journal entries for each year. Problem 38 This is data from the Marjean Company: Accounts Receivable $100,000 Inventory 80,000 Fixed Assets $600,000 Accum Deprec 200,000 400,000 Accounts Payable Note Payable Owners' Equity 30,000 150,000 400,000 Burden Co. will buy Marjean Company for $1,200,000. They estimate the Accounts Receivable are worth $ 96,000, the Inventory is worth $90,000 and the Fixed Assets are worth $800.000, The Note Payable is interest only at 10% with the principal due 5 years from today. Current interest is 12%. Everything else is worth its book value. Prepare the journal entry for the purchase on Burden Co.'s books. Aa