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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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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