In the opace under each description, provide the necessary journal entry(s) in the proper form for the transaction or time period indicated, The company's year-end was December 31, 2019 and all appropriate journal entries were made at that time. The company closes their books on the monthly basis. 1. On January 1, 2020, the company purchased a piece of equipment costing $56,000, paying $8,000 in cash and financing the remainder at 4%. Principal and interest are both due on June 1, 2020. 2. What journal entry would be made on January 31, 2020, with regard to the above transaction? 3. On December 1, 2019, the company paid $7,800 cash for an annual insurance premium. At the time, they debited insurance expense. What entry should be made on January 31, 2020, when they discover the error?
In the opace under each description, provide the necessary journal entry(s) in the proper form for the transaction or time period indicated, The company's year-end was December 31, 2019 and all appropriate journal entries were made at that time. The company closes their books on the monthly basis. 1. On January 1, 2020, the company purchased a piece of equipment costing $56,000, paying $8,000 in cash and financing the remainder at 4%. Principal and interest are both due on June 1, 2020. 2. What journal entry would be made on January 31, 2020, with regard to the above transaction? 3. On December 1, 2019, the company paid $7,800 cash for an annual insurance premium. At the time, they debited insurance expense. What entry should be made on January 31, 2020, when they discover the error?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
I need the answer as soon as possible
Transcribed Image Text:in the space under each description, provide the necessary journal entry(s) in the
proper form for the transaction or time period indicated. The company's year-end
was December 31, 2019 and all appropriate journal entries were made at that time.
The company closes their books on the monthly basis.
1. On January 1, 2020, the company purchased a piece of equipment costing
$56,000, paying $8,000 in cash and financing the remainder at 4%. Principal
and interest are both due on June 1, 2020.
2. What journal entry would be made on January 31, 2020, with regard to the above
transaction?
3. On December 1, 2019, the company paid $7,800 cash for an annual insurance
premium. At the time, they debited insurance expense. What entry should be
made on January 31, 2020, when they discover the error?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education