(Entries for Zero-Interest-Bearing Note; Payable in Installments) Sabonis Cosmetics Co. purchased machinery on December 31, 2016, paying $50,000 down and agreeing to pay the balance in four equal installments of $40,000 payable each December 31. An assumed interest of 8% is implicit in the purchase price.InstructionsPrepare the journal entries that would be recorded for the purchase and for the payments and interest on the following dates.(Round answers to the nearest cent.)(a) December 31, 2016. (d) December 31, 2019.(b) December 31, 2017. (e) December 31, 2020.(c) December 31, 2018.
(Entries for Zero-Interest-Bearing Note; Payable in Installments) Sabonis Cosmetics Co. purchased machinery on December 31, 2016, paying $50,000 down and agreeing to pay the balance in four equal installments of $40,000 payable each December 31. An assumed interest of 8% is implicit in the purchase price.InstructionsPrepare the journal entries that would be recorded for the purchase and for the payments and interest on the following dates.(Round answers to the nearest cent.)(a) December 31, 2016. (d) December 31, 2019.(b) December 31, 2017. (e) December 31, 2020.(c) December 31, 2018.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 15EA: Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise....
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(Entries for Zero-Interest-Bearing Note; Payable in Installments) Sabonis Cosmetics Co. purchased machinery on December 31, 2016, paying $50,000 down and agreeing to pay the balance in four equal installments of $40,000 payable each December 31. An assumed interest of 8% is implicit in the purchase price.
Instructions
Prepare the
(Round answers to the nearest cent.)
(a) December 31, 2016. (d) December 31, 2019.
(b) December 31, 2017. (e) December 31, 2020.
(c) December 31, 2018.
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