On January 1, 2024, Wendall Company purchases new equipment for $635,000. Wendall is required to make a down payment of $115,000 and issue an installment note for the remaining balance of $520,000. The note requires payments of $70,985.10 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 $115,000 and the installment note of $520,000 on January 1, 2024. 2. Record the first payment of $70,985.10 on March 31, 2024. Please do not give handwritten answer thanku
On January 1, 2024, Wendall Company purchases new equipment for $635,000. Wendall is required to make a down payment of $115,000 and issue an installment note for the remaining balance of $520,000. The note requires payments of $70,985.10 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 $115,000 and the installment note of $520,000 on January 1, 2024. 2. Record the first payment of $70,985.10 on March 31, 2024. Please do not give handwritten answer thanku
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 14RE: On January 1, 2019, Boater Company issues a 20,000 non-interest-bearing, 5-year note for equipment....
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On January 1, 2024, Wendall Company purchases new equipment for $635,000. Wendall is required to make a down payment of $115,000 and issue an installment note for the remaining balance of $520,000. The note requires payments of $70,985.10 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 $115,000 and the installment note of $520,000 on January 1, 2024.
2. Record the first payment of $70,985.10 on March 31, 2024.
Please do not give handwritten answer thanku
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