Aug. 1, 2023: Purchased equipment costing $20,000 by issuing a one-year, 9% note payable. Date 2023 Aug. 1 Equipment Accounts and Explanation Notes Payable Purchased equipment in exchange for one-year, 9% note. Dec. 31, 2023: Accrued interest on the note payable. Date Accounts and Explanation 2023 Dec. 31 Interest Expense Interest Payable Accrued interest expense at year-end. Aug. 1, 2024: Paid the note payable plus interest at maturity. Date Accounts and Explanation 2024 Aug. 1 Debit 20,000 Debit 750 Debit Credit 20,000 Credit 750 Credit
Aug. 1, 2023: Purchased equipment costing $20,000 by issuing a one-year, 9% note payable. Date 2023 Aug. 1 Equipment Accounts and Explanation Notes Payable Purchased equipment in exchange for one-year, 9% note. Dec. 31, 2023: Accrued interest on the note payable. Date Accounts and Explanation 2023 Dec. 31 Interest Expense Interest Payable Accrued interest expense at year-end. Aug. 1, 2024: Paid the note payable plus interest at maturity. Date Accounts and Explanation 2024 Aug. 1 Debit 20,000 Debit 750 Debit Credit 20,000 Credit 750 Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Aug. 1, 2023: Purchased equipment costing $20,000 by issuing a one-year, 9% note
payable.
Date
2023
Aug.
1
Equipment
Accounts and Explanation
Notes Payable
Purchased equipment in exchange for one-year, 9%
note.
Dec. 31, 2023: Accrued interest on the note payable.
Date
Accounts and Explanation
2023
Dec.
31
Interest Expense
Interest Payable
Accrued interest expense at year-end.
Aug. 1, 2024: Paid the note payable plus interest at maturity.
Date
Accounts and Explanation
2024
Aug.
1
Debit
20,000
Debit
750
Debit
Credit
20,000
Credit
750
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F272d3191-fa54-4ea9-b6f8-85b168273ffe%2F9e9bb4ab-8318-48cb-9982-fd80d6a38451%2Fdszefig_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Aug. 1, 2023: Purchased equipment costing $20,000 by issuing a one-year, 9% note
payable.
Date
2023
Aug.
1
Equipment
Accounts and Explanation
Notes Payable
Purchased equipment in exchange for one-year, 9%
note.
Dec. 31, 2023: Accrued interest on the note payable.
Date
Accounts and Explanation
2023
Dec.
31
Interest Expense
Interest Payable
Accrued interest expense at year-end.
Aug. 1, 2024: Paid the note payable plus interest at maturity.
Date
Accounts and Explanation
2024
Aug.
1
Debit
20,000
Debit
750
Debit
Credit
20,000
Credit
750
Credit
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