Consider the following note payable transactions of Cargo Video Productions. i (Click the icon to view the transactions.) Requirements 1. Journalize the transactions for the company. 2. Considering the given transactions only, what are Cargo Video Productions' total liabilities on December 31, 2025? Requirement 1. Journalize the transactions for the company. (Record debits first, then credits. Select explanations on the last line of the journal entry.) Sep. 1, 2024: Purchased equipment costing $270,000 by issuing a nine-year, 7% note payable. The note requires annual principal payments of $30,000 plus interest each September 1. Date Accounts and Explanation Debit Credit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Consider the following note payable transactions of Cargo Video Productions.
i (Click the icon to view the transactions.)
Requirements
1.
Journalize the transactions for the company.
2.
Considering the given transactions only, what are Cargo Video Productions' total liabilities on December 31, 2025?
Requirement 1. Journalize the transactions for the company. (Record debits first, then credits. Select explanations on the last line of the journal entry.)
Sep. 1, 2024: Purchased equipment costing $270,000 by issuing a nine-year, 7% note payable. The note requires annual principal payments of $30,000 plus interest each September 1.
Date
Accounts and Explanation
Debit
Credit
2024
Sep. 1
Equipment
270,000
Notes Payable
270,000
Purchased equipment by issuing a 9-year, 7% note.
Dec 31, 2024: Accrued interest on the note payable.
Date
Accounts and Explanation
Debit
Credit
2024
Dec. 31
Interest Expense
6,300
Interest Payable
6,300
Recognized accrued interest.
Sep. 1, 2025: Paid the first installment on the note.
Date
Accounts and Explanation
Debit
Credit
2025
Sep. 1
Interest Expense
Intercat Devabla
Transcribed Image Text:Consider the following note payable transactions of Cargo Video Productions. i (Click the icon to view the transactions.) Requirements 1. Journalize the transactions for the company. 2. Considering the given transactions only, what are Cargo Video Productions' total liabilities on December 31, 2025? Requirement 1. Journalize the transactions for the company. (Record debits first, then credits. Select explanations on the last line of the journal entry.) Sep. 1, 2024: Purchased equipment costing $270,000 by issuing a nine-year, 7% note payable. The note requires annual principal payments of $30,000 plus interest each September 1. Date Accounts and Explanation Debit Credit 2024 Sep. 1 Equipment 270,000 Notes Payable 270,000 Purchased equipment by issuing a 9-year, 7% note. Dec 31, 2024: Accrued interest on the note payable. Date Accounts and Explanation Debit Credit 2024 Dec. 31 Interest Expense 6,300 Interest Payable 6,300 Recognized accrued interest. Sep. 1, 2025: Paid the first installment on the note. Date Accounts and Explanation Debit Credit 2025 Sep. 1 Interest Expense Intercat Devabla
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