Tamarisk Corporation purchased a computer on December 31, 2024, for $138,600, paying $39,600 down and agreeing to pay the balance in five equal installments of $19,800 payable each December 31 beginning in 2025. An assumed interest rate of 9% is implicit in the purchase price. (a) Your Answer Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g. 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. List all debit entries before credit entries.) Date Dec. 31, 2024 (b) Correct Answer (Used) Date Account Titles and Explanation ec. 31, 2025 Equipment Discount on Notes Payable Notes Payable Your answer is partially correct. Cash Account Titles and Explanation Interest Expense Notes Payable Prepare the journal entry at December 31, 2025, to record the payment and interest (effective-interest method employed). (Round answers to 2 decimal places, e.g. 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. List all debit entries before credit entries.) Discount on Notes Payable Debit Cash 116,615.07 Debit 21,984.93 9639 Credit 19800 99,000 Credit 39,600 9639 19800
Tamarisk Corporation purchased a computer on December 31, 2024, for $138,600, paying $39,600 down and agreeing to pay the balance in five equal installments of $19,800 payable each December 31 beginning in 2025. An assumed interest rate of 9% is implicit in the purchase price. (a) Your Answer Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g. 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. List all debit entries before credit entries.) Date Dec. 31, 2024 (b) Correct Answer (Used) Date Account Titles and Explanation ec. 31, 2025 Equipment Discount on Notes Payable Notes Payable Your answer is partially correct. Cash Account Titles and Explanation Interest Expense Notes Payable Prepare the journal entry at December 31, 2025, to record the payment and interest (effective-interest method employed). (Round answers to 2 decimal places, e.g. 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. List all debit entries before credit entries.) Discount on Notes Payable Debit Cash 116,615.07 Debit 21,984.93 9639 Credit 19800 99,000 Credit 39,600 9639 19800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The numbers in red are incorrect. Thank you!
Transcribed Image Text:Tamarisk Corporation purchased a computer on December 31, 2024, for $138,600, paying $39,600 down and agreeing to pay the
balance in five equal installments of $19,800 payable each December 31 beginning in 2025. An assumed interest rate of 9% is implicit
in the purchase price.
(a)
Your Answer Correct Answer (Used)
Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal
places, e.g. 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. List all debit entries before credit entries.)
(b)
Date
Dec. 31, 2024
Account Titles and Explanation
Date
Equipment
ec. 31, 2025
Discount on Notes Payable
Notes Payable
Your answer is partially correct.
Cash
Account Titles and Explanation
Interest Expense
Notes Payable
Discount on Notes Payable
III
Prepare the journal entry at December 31, 2025, to record the payment and interest (effective-interest method employed).
(Round answers to 2 decimal places, e.g. 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. List all debit entries before credit
entries.)
Cash
Debit
116,615.07
Debit
21,984.93
9639
Credit
19800
99,000
Credit
39,600
9639
19800
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