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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F11c3987d-a442-42cb-9ec3-7484084a8a29%2F14546fb0-7f2e-4cc5-a82b-38f24f6d6c67%2F1df61wh_processed.jpeg&w=3840&q=75)
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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