On 1 January 2008, Spencer purchased equipment for his business valued $10 000 by cheque. He also wanted to expand his business at this time so he borrowed $28 000 from the Rose Bank of Nassau at the rate of 12% interest per annum for two and a half 7. (2%) years on 31 January 2008. On 31 December 2008, he depreciated the equipment by 2% of cost. On this same date, Rose Bank of Nassau deducted $700 from the business' current account for interest payment due on the bank loan and bank charges of $60 for services rendered. YOU ARE REQUIRED TO: I. Prepare journal entries necessary to record these transactions. Narratives are NOT necessary.
On 1 January 2008, Spencer purchased equipment for his business valued $10 000 by cheque. He also wanted to expand his business at this time so he borrowed $28 000 from the Rose Bank of Nassau at the rate of 12% interest per annum for two and a half 7. (2%) years on 31 January 2008. On 31 December 2008, he depreciated the equipment by 2% of cost. On this same date, Rose Bank of Nassau deducted $700 from the business' current account for interest payment due on the bank loan and bank charges of $60 for services rendered. YOU ARE REQUIRED TO: I. Prepare journal entries necessary to record these transactions. Narratives are NOT necessary.
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 11EB: Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT