Given: Notes Payable: 680,000 1. A disinfection machine worth P180,000 was purchased on September 1, 2020 with an issuance of a notes payable that has an interest rate of 6%. The note and interest are due on April 30, 2021. The notes payable was correctly booked but the equipment was erroneously recorded under Other Operating Expenses. No other entries were made in 2020 related to the equipment. 2. Notes payable other than the one 180, 000 notes payable was issued on January 1, 2020 with a rate of 15% and payable on December 31, 2024. Interest is paid every January 1. Accrual of interest expense for the 4th quarter has not yet been recorded for all notes payable. Prepare the correcting entry for 1 nad adjusting entry for December 31, 2021 for 2.
Given: Notes Payable: 680,000
1. A disinfection machine worth P180,000 was purchased on September 1, 2020 with an issuance of a notes payable that has an interest rate of 6%. The note and interest are due on April 30, 2021. The notes payable was correctly booked but the equipment was erroneously recorded under Other Operating Expenses. No other entries were made in 2020 related to the equipment.
2. Notes payable other than the one 180, 000 notes payable was issued on January 1, 2020 with a rate of 15% and payable on December 31, 2024. Interest is paid every January 1. Accrual of interest expense for the 4th quarter has not yet been recorded for all notes payable.
Prepare the correcting entry for 1 nad
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