Your answer is partially correct. Try again. Prepare the journal entry at the end of the first year to record the payment and interest, assuming that the company employs the effective-interest method. (Round answers to O decimal places, eg.5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Debit Credit Account Titles and Explanation Notes Payable Interest Expense 192,000 709613 709613 Discount on Notes Payable Cash 192,000 SHOW LIST OF ACCOUNTS Your answer is partially correct. Try again. Prepare the journal entry at the end of the second year to record the payment and interest. (Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Interest Expense Discount on Notes Payable 192000 Cash SHOW LIST OF ACCOUNTS Your answer is incorrect. Try again. Assuming that the equipment had a 10-year life and no salvage value, prepare the journal entry necessary to record depreciation in the first year. (Straight-line depreciation is employed.) (Round answers to O decimal places,e.g.5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Debit Credit Account Titles and Explanation Click if you would like to Show Work for this question: Open Show Work Exercise 10-14 Buffalo Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2017, to expand its production capacity to meet customers' demand for its product. Buffalo issues a(n) $960,000 5-year, zero interest-bearing note to Central Michigan for the new equipment when the prevailing market rate of interest or obli ations of this natures The company wil of the note in five $192,000 installments due at the end of each year over the life of the note. Your answer is partially correct. Try again. Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Equipment Debit Credit 709613 250387 Interest Expense Notes Payable 960,000
