On January 1, 2020, a pet store buys a new dog and cat washing station...
80.2K
Verified Solution
Link Copied!
Question
Accounting
On January 1, 2020, a pet store buys a new dog and cat washing station costing $7,000 with an 8.1% installment note. The note will be paid off with payments made at the end of each quarter over two years. Each payment is $956.60.
Complete the installment note schedule below, rounding all numbers to the nearest dollar:
PERIOD
CASH Payment
INTEREST EXPENSE
Reduction of N/P
N/P Balance
1/1/20
$7,000
3/31/20
6/30/20
9/30/20
12/31/20
3/31/21
6/30/21
9/30/21
12/31/21
What is the journal entry to record the purchase of the equipment on January 1, 2020?
What is the journal entry for March 31, 2021?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
