QUESTION 4:

Alphas Company prepares quarterly adjusting entries. On August 31, 2017, Alpha Company purchased equipment with a sticker price of $8,515 and signed a note due in 9 months for $10,000 that included interest in the value of the note. Use this information to prepare the general journal entry for the August 31, equipment purchase. Prepare any additional general journal adjusting entries for Fiscal Years 2017 & 2018. Additionally, prepare the general journal entry to record the payment of the note when due in 2018.

ANSWER 4:

General Journal

Date	Accounts	Debit	Credit
8/31/17
9/30/17
12/31/17
3/31/18
5/31/18