Company A bought a machine on January 1, 2015. The company signed a note to provide a cash payment for the machine to be paid on December 31, 2016. The market interest rate is 9%. The present value of the liability on January 1, 2015 is $1683. question: A.) record the journal entry for the acquisition of the machine on January 1, 2015. Make sure to clearly label your debits and credits and include classification of each account. b.) record the journal entries for the interest expense for 2015 and 2016. Round to the nearest dollar. Make sure to label debits and credits and include classification of each account. c.) Record the journal entry for the cash payment on December 31, 2016. Make sure the label debits and credits and include classifications of each account
Company A bought a machine on January 1, 2015. The company signed a note to provide a cash payment for the machine to be paid on December 31, 2016. The market interest rate is 9%. The present value of the liability on January 1, 2015 is $1683.
question:
A.) record the
Make sure to clearly label your debits and credits and include classification of each account.
b.) record the journal entries for the interest expense for 2015 and 2016. Round to the nearest dollar.
Make sure to label debits and credits and include classification of each account.
c.) Record the journal entry for the cash payment on December 31, 2016.
Make sure the label debits and credits and include classifications of each account.
Step by step
Solved in 5 steps with 3 images
