What was done mathematically to get 594?

= $6,600 x 0.12

= $792

= $792 ?/12

= $594

EXAMPLE 3.1 2016 Transactions and Analyses (Jaymie Corporation) Date Transaction Analysis 3/30 Jaymie purchases a building and equipment for $15,320 Asset accounts Building and Equipment increased and $2,120, respectively. Jaymie pays $10,840 and (debited) by $15,320 and $2,120, respectively; Cash signs a 12% note (interest and principal to be paid after decreased (credited) by $10,840; liability account Notes 2 years) for the $6,600 balance. Payable increased (credited) by $6,600. General Journal Entries (Jaymie Corporation) EXAMPLE 3.2 Account Titles and Explanations Debit Credit Date 2016 Mar. 30 15,320 2,120 Building Equipment Cash Notes Payable Purchased a building and equipment for cash and a note payable. 10,840 6,600 General Ledger (Jaymie Corporation) EXAMPLE 3.3 1/1 4/2 12/1 12/2 Cash 20,000 1/16 8,000 3/30 450 3/30 2,000 4/8 7/15 10/1 12/28 12/29 3,000 10,840 360 7,300 3,300 1,800 428 500 Balance 2,922 Building 3/30 15,320 Equipment 3/30 2,120 Notes Payable | 3/30 6,600 EXAMPLE 3.4 Adjusting Entries for 2016 (Jaymie Corporation) Debit Credit Date Account Titles and Explanations 2016 Dec. 31 31 Interest Expense Interest Payable To record interest accumulated on the note payable issued on March 30 and due March 30, 2018. 594 594