Record the purchase of equipment with down payment

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Reference no: EM133543611

Question: Record installment note with down payment (LO9-2) On January 1, 2024, Wendall Company purchases new equipment for $841,000. Wendall is required to make a down payment of $127,000 and issue an installment note for the remaining balance of $714,000. The note requires payments of $97,468.00 every three months, beginning March 31, 2024, over the next two years. The interest rate on the note is 8% annually (or 2% every three months).

Required: 1. Record the purchase of equipment with down payment of $127,000 and the installment note of $714,000 on January 1, 2024. 2. Record the first payment of $97,468.00 on March 31, 2024. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to 2 decimal places.)

Reference no: EM133543611

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