Current Attempt in ProgressSweet Corporation purchased a computer on December 31, 2019, for $140,700, paying $40,200 down and agreeing to pay thebalance in five equal installments of $20,100 payable each December 31 beginning in 2020. An assumed interest rate of 9% is implicitin the purchase price.(a)Your answer is correct.Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, eg. 1.25124 and final answers to 2 decimalplaces, eg. 52.75. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required,select "No Entry" for the account titles and enter O for the amounts.)lateAccount Titles and ExplanationDebitCrediter 31, 2019Equipment118382Discount on Notes Payable22318Notes Payable100500Cash40200Prepare the journal entry at December 31, 2020, to record the payment and interest (effective-interest method employed).(Round answers to 2 decimal places, eg. 52.75. Credit account titles are automatically indented when amount is entered. Do not indentmanually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)lateAccount Titles and ExplanationDebitCrediter 31, 2020 Interest ExperseNotes PayableDiscount on Notes PayableCash(c)Prepare the journal entry at December 31, 2021, to record the payment and interest (effective-interest method employed).(Round answers to 2 decimal places, eg. 52.75. Credit account titles are automatically indented when amount is entered. Do not indentmanually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)DateAccount Titles and ExplanationDebitCreditDecember 31, 2021

Here discuss about the purchase of equipment which are first to paid the down payment of certain…

Sweet Corporation purchased a computer on December 31, 2019, for $140,700, paying $40,200 down and agreeing to pay the balance in five equal installments of $20,100 payable each December 31 beginning in 2020. An assumed interest rate of 9% is implicit in the purchase price.

Sweet Corporation purchased a computer on December 31, 2019, for $140,700, paying $40,200 down and agreeing to pay the balance in five equal installments of $20,100 payable each December 31 beginning in 2020. An assumed interest rate of 9% is implicit in the purchase price.

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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