Note Payable problem. On November 1, 2021, Good Luck Inc. received Equipment valued at $600,000 in exchange for a 8% long-term note payable. The note ispayable over a 20-year term in $30,000 principal installments due on November 1 of each year, beginning November 1, 2022. At the time of each installment theinterest due at that time is paid also. In the space below provide the following 3 journal entries: The November 1, 2021 entry to roceive the Equipment and put thenote on the books, the Dec 31, 2021 adjusting entry for 2 months of interest, and the November 1, 2022 payment of the installment and interest

ANSWER The journal entries are prepared to keep the record of day to day transactions of the…

Note Payable problem. On November 1, 2021, Good Luck Inc. received Equipment valued at $600,000 in exchange for a 8% long-term note payable. The note is payable over a 20-year term in $30,000 principal installments due on November 1 of cach year, beginning November 1, 2022. At the time of cach installment the interest due at that time is paid also. In the space below provide the following 3 jourmal entries: The November I, 2021 entry to receive the Equipment and put the note on the books, the Dec 31, 2021 adjusting entry for 2 months of interest, and the November 1, 2022 payment of the installment and interest.

Note Payable problem. On November 1, 2021, Good Luck Inc. received Equipment valued at $600,000 in exchange for a 8% long-term note payable. The note is payable over a 20-year term in $30,000 principal installments due on November 1 of cach year, beginning November 1, 2022. At the time of cach installment the interest due at that time is paid also. In the space below provide the following 3 jourmal entries: The November I, 2021 entry to receive the Equipment and put the note on the books, the Dec 31, 2021 adjusting entry for 2 months of interest, and the November 1, 2022 payment of the installment and interest.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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