On January 1, 2020, a company buys a piece of equipment costing $666,633 with a 14% installment note. The note will be paid off with 6 semiannual payments over three years (2 payments a year for 3 years). Each payment is $139,857. Prepare the installment note schedule, rounding all numbers to the nearest dollar: PERIOD CASH PAYMENT INTEREST EXPENSE REDUCTION OF N/P N/P BALANCE 1/1/20 --- --- --- $666,633 6/30/20 12/31/20 6/30/21 12/31/21 6/30/22 12/31/22 Provide the journal entry to record the purchase of the equipment on January 1, 2020. Provide the journal entry for June 30, 2022.
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On January 1, 2020, a company buys a piece of equipment costing $666,633 with a 14% installment note. The note will be paid off with 6 semiannual payments over three years (2 payments a year for 3 years). Each payment is $139,857.
Prepare the installment note schedule, rounding all numbers to the nearest dollar:
|
PERIOD |
CASH PAYMENT |
INTEREST EXPENSE |
REDUCTION OF N/P |
N/P BALANCE |
1/1/20 --- --- --- $666,633
6/30/20
12/31/20
6/30/21
12/31/21
6/30/22
12/31/22
Provide the
Provide the journal entry for June 30, 2022.
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