Note Payable problem: On October 1, 2021, Good Luck Inc. received Equipment valued at $900,000 in exchange for a 10% long-term note payable. The note is payable over a 20-year term in $45,000 principal installments due on October 1 of each year, beginning October 1, 2022. At the time of each installment the interest due at that time is paid also. provide the following 3 journal entries: * The October 1, 2021 entry to receive the Equipment and put the note on the books. * the Dec 31, 2021 adjusting entry for 3 months of interest. * and the October 1, 2022 payment of the installment and interest. (with proper format )
Note Payable problem: On October 1, 2021, Good Luck Inc. received Equipment valued at $900,000 in exchange for a 10% long-term note payable. The note is payable over a 20-year term in $45,000 principal installments due on October 1 of each year, beginning October 1, 2022. At the time of each installment the interest due at that time is paid also. provide the following 3 journal entries: * The October 1, 2021 entry to receive the Equipment and put the note on the books. * the Dec 31, 2021 adjusting entry for 3 months of interest. * and the October 1, 2022 payment of the installment and interest. (with proper format )
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Note Payable problem:
On October 1, 2021, Good Luck Inc. received Equipment valued at $900,000 in exchange for a 10% long-term note payable. The note is payable over a 20-year term in $45,000 principal installments due on October 1 of each year, beginning October 1, 2022. At the time of each installment the interest due at that time is paid also.
provide the following 3
* The October 1, 2021 entry to receive the Equipment and put the note on the books.
* the Dec 31, 2021
* and the October 1, 2022 payment of the installment and interest.
(with proper format )
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