Jason purchased a new piece of equipment to be used in its new facility. The $450,000 piece of equipment was purchased with a $45,000 down payment and with cash received through the issuance of a $405,000, 9%, 5-year mortgage payable issued on January 1, 2022. The terms provide for annual installment payments of $104,122 on December 31. 1.Prepare an installment payments schedule for the first five payments of the notes payable. 2.Prepare the journal entry related to the notes payable for December 31, 2022. 3.Show the balance sheet presentation for this obligation for December 31, 2022.
Jason purchased a new piece of equipment to be used in its new facility. The $450,000 piece of equipment was purchased with a $45,000 down payment and with cash received through the issuance of a $405,000, 9%, 5-year mortgage payable issued on January 1, 2022. The terms provide for annual installment payments of $104,122 on December 31. 1.Prepare an installment payments schedule for the first five payments of the notes payable. 2.Prepare the journal entry related to the notes payable for December 31, 2022. 3.Show the balance sheet presentation for this obligation for December 31, 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Jason purchased a new piece of equipment to be used in its new facility. The $450,000 piece of equipment was purchased with a $45,000 down payment and with cash received through the issuance of a $405,000, 9%, 5-year mortgage payable issued on January 1, 2022. The terms provide for annual installment payments of $104,122 on December 31.
1.Prepare an installment payments schedule for the first five payments of the notes payable.
2.Prepare the
3.Show the balance sheet presentation for this obligation for December 31, 2022.
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