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On January 1, 2024, Mitchell Company purchases new equipment for $700,000. Mitchell is required to make a down paymenil $100,000 and issue an installment note for the remaining balance of $600,000. The note requires payments of $81,905.88 every thres months, beginning March 31, 2024, over the next two years. The interest rate on the note is 8% annually (or 2% every three months). Required: 1. Record the purchase of equipment with down payment of $100,000 and the installment note of $600,000 on January 1, 2024. 2. Record the first payment of $81,905.88 on March 31, 2024, (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not rou intermediate calculations. Round your answers to 2 decimal places.) View transaction list Journal entry worksheet 1 2 Record the purchase of equipment with down payment of $100,000 and the installment note of $600,000 on January 1, 2024. Note: Enter debits before credits. Date January 01, 2024 General Journal Debit Credit

On January 1, 2024, Mitchell Company purchases new equipment for $700,000. Mitchell is required to make a down paymenil $100,000 and issue an installment note for the remaining balance of $600,000. The note requires payments of $81,905.88 every thres months, beginning March 31, 2024, over the next two years. The interest rate on the note is 8% annually (or 2% every three months). Required: 1. Record the purchase of equipment with down payment of $100,000 and the installment note of $600,000 on January 1, 2024. 2. Record the first payment of $81,905.88 on March 31, 2024, (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not rou intermediate calculations. Round your answers to 2 decimal places.) View transaction list Journal entry worksheet 1 2 Record the purchase of equipment with down payment of $100,000 and the installment note of $600,000 on January 1, 2024. Note: Enter debits before credits. Date January 01, 2024 General Journal Debit Credit

FINANCIAL ACCOUNTING
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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2 On January 1, 2024, Mitchell Company purchases new equipment for $700,000. Mitchell is required to make a down paymen $100,000 and issue an installment note for the remaining balance of $600,000. The note requires payments of $81,905.88 every three months, beginning March 31, 2024, over the next two years. The interest rate on the note is 8% annually (or 2% every three months). Required: 1. Record the purchase of equipment with down payment of $100,000 and the installment note of $600,000 on January 1, 2024. 2. Record the first payment of $81,905.88 on March 31, 2024. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to 2 decimal places.) View transaction list Journal entry worksheet 1 2 Record the purchase of equipment with down payment of $100,000 and the installment note of $600,000 on January 1, 2024. Note: Enter debits before credits. Date January 01, 2024 General Journal Debit Credit
Transcribed Image Text:2 On January 1, 2024, Mitchell Company purchases new equipment for $700,000. Mitchell is required to make a down paymen $100,000 and issue an installment note for the remaining balance of $600,000. The note requires payments of $81,905.88 every three months, beginning March 31, 2024, over the next two years. The interest rate on the note is 8% annually (or 2% every three months). Required: 1. Record the purchase of equipment with down payment of $100,000 and the installment note of $600,000 on January 1, 2024. 2. Record the first payment of $81,905.88 on March 31, 2024. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to 2 decimal places.) View transaction list Journal entry worksheet 1 2 Record the purchase of equipment with down payment of $100,000 and the installment note of $600,000 on January 1, 2024. Note: Enter debits before credits. Date January 01, 2024 General Journal Debit Credit
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