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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Journalize the transactions for the company. 2. Considering the given transactions only, what are Video Productions' total liabilities on December 31, 2025? Requirement 1. Journalize the transactions for the company. (Record debits first, then credits. Select explanations on the last line of the journal entry.) Apr. 1, 2024: Purchased equipment costing $198,000 by issuing nine-year, 8% note payable. The note requires annual principal payments of $22,000 plus interest each April 1.
 alt="Dec 31, 2024: Accrued interest on the note payable.
Date
Accounts and Explanation
Debit
Credit
2024
Dec. 31 Interest Expense
Interest Payable
Recognized accrued interest.
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Transcribed Image Text:Dec 31, 2024: Accrued interest on the note payable.
Date
Accounts and Explanation
Debit
Credit
2024
Dec. 31 Interest Expense
Interest Payable
Recognized accrued interest.
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- McNamara Industries completed the following transactions during 2024: (Click the icon to view the transactions.) Journalize the transactions. Explanations are not required. Round to the nearest dollar. (Record debits first, then credits. Exclude explanations from journal entries.) Nov. 1: Made sales of $16,000. McNamara estimates that warranty expense is 5% of sales. (Record only the warranty expense.) Date Accounts Debit Credit Nov. 1 More info Nov. 1 Nov. 20 Dec. 31 Dec. 31 ← Made sales of $16,000. McNamara estimates that warranty expense is 5% of sales. (Record only the warranty expense.) Paid $500 to satisfy warranty claims. Estimated vacation benefits expense to be $3,500. McNamara expected to pay its employees a 4% bonus on net income after deducting the bonus. Net income for the year is $25,000. Prin Done Xarrow_forwardE4-29 Mattson Loan Company completed these transactions: 2019 Apr. Dec. 2020 Apr. 1 Loaned $20,000 to Charlene Baker on a one-year, 5% note. 31 Accrued interest revenue on the Baker note. 1 Collected the maturity value of the note from Baker (principal plus interest). Show what Mattson would report for these transactions on its 2019 and 2020 balance sheets and income statements. Mattson's accounting year ends on December 31.arrow_forwardOn November 1, 2021, a firm issues a $10,000 6% 6-month note payable. Interest is paid with the maturity of the note. The firm performs adjusting entries each month. On April 30, when the note is repaid, the entry recorded: Decreases assets by $10,000 None are true Decreases both assets and liabilities $10,300 Includes an expense of $200 Includes an expense of $300arrow_forward
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