The company can purchase the equipment by borrowing $218,000 with a 25- month, 12% installment note. Payments of $9,898.67 are due at the end of each month, and the first installment is due on January 31, 2024. Record the issuance of the installment note payable for the purchase of the equipment.
The company can purchase the equipment by borrowing $218,000 with a 25- month, 12% installment note. Payments of $9,898.67 are due at the end of each month, and the first installment is due on January 31, 2024. Record the issuance of the installment note payable for the purchase of the equipment.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter10: Liabilities: Current, Installment Notes, And Contingencies
Section: Chapter Questions
Problem 20E: Entries for installment note transactions On January 1, 20Y2, Hebron Company issued a 175,000,...
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I need ans in 15 to 20 minutes of both parts just give me the values
Transcribed Image Text:Journal entry worksheet
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1 2
The company can purchase the equipment by borrowing $218,000 with a 25-
month, 12% installment note. Payments of $9,898.67 are due at the end of
each month, and the first installment is due on January 31, 2024. Record the
issuance of the installment note payable for the purchase of the equipment.
Note: Enter debits before credits.
Date
January 01, 2024
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
Transcribed Image Text:Journal entry worksheet
1
2
The company can sign a 25-month lease for the equipment by agreeing to pay
$7,900.78 at the end of each month, beginning January 31, 2024. At the end
of the lease, the equipment must be returned. Assuming a borrowing rate of
12%, record the lease.
Note: Enter debits before credits.
Date
January 01, 2024
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
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