Prepare the journal entry to record the accrual of interest

Assignment Help Financial Accounting
Reference no: EM132993986

Question - On July 31, 2020, a company purchased equipment for $136,800, paying $42,000 cash and signing a 8% note payable for the remainder. The interest and principal of the note are due on January 31, 2021.

Required -

1. Prepare the journal entry to record the purchase of the equipment on July 31, 2020.

2. Prepare the journal entry to record the accrual of the interest at year end, November 30, 2020, assuming interest has not previously been accrued.

3. Prepare the journal entry to record the repayment of the interest and note on January 31, 2021.

Reference no: EM132993986

Questions Cloud

CIQHC701 Healthcare Management and Leadership Assignment : CIQHC701 Healthcare Management and Leadership Assignment Help and Solution, westford university college - Assessment Writing Service
What is the current market value of one of these bonds : The current market rate for similar securities is 10.5 percent. Assume that the face value of the bond is $1,000. What is the current market value
How much is the bond worth today : Suppose a bond will pay $1000 ten years from now. If the going interest rate on these 10 year bonds is 5.5%. How much is the bond worth today
What was its P-E ratio : Question - Stock price at the end of last year was $33.50 and its earnings per share for the year were $2.30. What was its P/E ratio
Prepare the journal entry to record the accrual of interest : Prepare the journal entry to record the accrual of the interest at year end, November 30, 2020, assuming interest has not previously been accrued
Produce a portfolio report : Stock Portfolio Assignment - Produce a Portfolio Report that you would expect to receive from an Investment Advisor. Present your material in a positive
Explain two fundamental characteristics : Based on IFRS framework, explain TWO fundamental characteristics and ONE enhancing characteristic that will not help meet the users' information needs
Explain whether the situation meets the assets criteria : The company recently spent $9,000 replacing windows broken during the recent theft incident. Explain whether the situation meets the assets criteria
What are some of the pros and cons of budget preparation : These budgets are then reviewed by upper level management. What are some of the pros & cons related to this type of budget preparation

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the total federal and provincial dividend tax credit

Ms. Rhonda Holland receives $6500, What is the total federal and provincial dividend tax credit she will be eligible for as a result of these dividends?

  Calculate the equipments carrying amount

Calculate the equipment's carrying amount at December 31, 2021 (after recording the annual depreciation). Record the impairment loss

  Is the trial balance out of balance

If out of balance, what is the difference between the column totals? Is the trial balance out of balance? Which column total is larger?

  Impact of increase in production volume on sales cost and

impact of increase in production volume on sales cost and income.redi-watt generators inc. produced emergency backup

  Determine the amount to allocate to each class

Determine the amount to allocate to each class and prepare the journal entries - House of Fashion issues 50 shares of common stock

  Trade discounts can accounted under the gross and net metod

Accounts Receivables includes customer or noncustomer transactions with interest component. Trade Discounts can be accounted under the gross and net method: Land could include additional land improvements that have an indefinite life. Cost of buildin..

  What assets secure debts

What assets secure your debts? What assets "do your"debts finance? What is the cost of your debts? What determined those costs?

  What is maximum income tax benefit that brass can realize

Brass Co. reported income before income tax expense, What is the maximum income tax benefit that Brass can realize from the loss carry forward?

  What is the three-year average operating margin

What is the three-year average operating margin that PA should assume in determining the number of potentially outstanding dilutive awards for purposes

  Calculate the market price per share

Rainbow Berhad is analysing the possible acquisition of Pearl Berhad. Calculate the market price per share and net present value under stock acquisition

  What is the diluted earnings per share for the year

The net income for the year ended December 31, 2012 is P640,000. Income tax rate is 32%. What is the diluted earnings per share for the year 2012?

  How many hats must ford sell each quarter to break even

Ford Tops manufactures hats for baseball teams. Ford has fixed costs of $89,700 per quarter and sells each hat for $46. If the variable cost per hat is $41.40, how many hats must Ford sell each quarter to break even?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd