Reference no: EM13578651

On March 1, fixtures and equipment were purchased for $5,500 with a downpayment of $1,000 plus a $4,500 note payable in one year. Interest of 5% per year is due when the note is repaid. The estimated life of the fixtures and equipment is 11 years with no expected salvage value. Depreciation on the fixtures and equipment is computed on a straight-line basis. [Note: Record the March 1 equipment purchase first, then the March 31 depreciation adjusting entry, and finally the March 31 interest adjusting entry. Also, round all answers to the nearest cent.]

Tell what accounts are affected in order, and by how much (values can be positive or negative). The answer choices are Cash, accounts receivable, inventory, prepaid rent, fixtures and equipment, accounts payable, interest payable, wages payable, notes payable, paid-in capital, retained earnings, leave blank. Some choices may show up more than once.