Tamarisk Corporation purchased a computer on December 31, 2024, for $138,600, paying $39,600 down and agreeing to pay thebalance in five equal installments of $19,800 payable each December 31 beginning in 2025. An assumed interest rate of 9% is implicitin the purchase price.(a)Your answer is partially correct.Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimalplaces, e.g. 52.75. 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. List all debit entries before credit entries.)Dateec. 31, 2024Account Titles and ExplanationEquipmentDiscount on Notes PayableNotes PayableCashDebit12612612474Credit9900039600

Answer : Date Account title Dr. Cr. Dec.31,2024 Equipment a/c Dr. $116,615 Discount on…

equal installments of $19,800 payable each December 31 e price. answer is partially correct. journal entry at the date of purchase. (Round factor values t 2.75. Credit account titles are automatically indented when am

equal installments of $19,800 payable each December 31 e price. answer is partially correct. journal entry at the date of purchase. (Round factor values t 2.75. Credit account titles are automatically indented when am

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concord Corporation purchased a computer on December 31, 2024, for $115,500, paying $33,000 down and agreeing to pay the balance in five equal installments of $16,500 payable each December 31 beginning in 2025. An assumed interest rate of 10% is implicit in the purchase price. Prepare the journal entry at December 31, 2025, to record the payment and interest (effective-interest method employed). (Round answers to 2 decimal places, e.g. 52.75. 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. List all debit entries before credit entries.) Date Account Titles and Explanation c. 31, 2025 Interest Expense Notes Payable Cash Discount on Notes Payable Debit 6600 16,500 Credit 6600 16500 Prepare the journal entry at December 31, 2026, to record the payment and interest (effective-interest method employed). (Round answers to 2 decimal places, e.g. 52.75.…
Tamarisk Corporation purchased a computer on December 31, 2024, for $138,600, paying $39,600 down and agreeing to pay the balance in five equal installments of $19,800 payable each December 31 beginning in 2025. An assumed interest rate of 9% is implicit in the purchase price. (a) Your answer is partially correct. Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g. 52.75. 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. List all debit entries before credit entries.) Date :. 31, 2024 Account Titles and Explanation Equipment Discount on Notes Payable Notes Payable Cash Debit 116615.00 21985.00 Credit 0 99000 39600
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