E11-15 Recording note payable transactions Consider the following note payable transactions of Creative Video Productions. 2017 Purchased equipment costing $16,000 by issuing a one-year, 9% note payable. Aug. 1 Dec. 31 Accrued interest on the note payable. 2018 Aug. 1 Paid the note payable plus interest at maturity. Journalize the transactions for the company.
E11-15 Recording note payable transactions Consider the following note payable transactions of Creative Video Productions. 2017 Purchased equipment costing $16,000 by issuing a one-year, 9% note payable. Aug. 1 Dec. 31 Accrued interest on the note payable. 2018 Aug. 1 Paid the note payable plus interest at maturity. Journalize the transactions for the company.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:**E11-15: Recording Note Payable Transactions**
Consider the following note payable transactions of Creative Video Productions.
**2017**
- **Aug. 1:** Purchased equipment costing $16,000 by issuing a one-year, 9% note payable.
- **Dec. 31:** Accrued interest on the note payable.
**2018**
- **Aug. 1:** Paid the note payable plus interest at maturity.
Journalize the transactions for the company.
---
**E11-16: Recording and Reporting Current Liabilities**
Watson Publishing completed the following transactions during 2018:
- **Oct. 1:** Sold a six-month subscription (starting on November 1), collecting cash of $240, plus sales tax of 8%.
- **Nov. 15:** Remitted (paid) the sales tax to the state of Tennessee.
- **Dec. 31:** Made the necessary adjustment at year-end to record the amount of revenue earned from the subscription sold on October 1.
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