Consider the following note payable transactions of Caleb Video Productions.2018 Oct. 1Purchased equipment costing $80,000 by issuing a five-year, 8% note payable. The note requires annual principal payments of $16,000 plus interest each October 1.Dec. 31Accrued interest on the note payable.2019 Oct. 1Paid the first installment on the note.Dec. 31Accrued interest on the note payable. RequirementsJournalize the transactions for the company.

Definition: Liabilities: The claims creditors have over assets or resources of a company are…

Answered: Consider the following note payable…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Consider the following note payable transactions of Caleb Video Productions.

2018
Oct. 1	Purchased equipment costing $80,000 by issuing a five-year, 8% note payable. The note requires annual principal payments of $16,000 plus interest each October 1.
Dec. 31	Accrued interest on the note payable.
2019
Oct. 1	Paid the first installment on the note.
Dec. 31	Accrued interest on the note payable.

Requirements

Journalize the transactions for the company.

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