| Author: | Homework Help Classof1 | ISBN: | 1230000133191 |
| Publisher: | Classof1 | Publication: | May 15, 2013 |
| Imprint: | Language: | English |
| Author: | Homework Help Classof1 |
| ISBN: | 1230000133191 |
| Publisher: | Classof1 |
| Publication: | May 15, 2013 |
| Imprint: | |
| Language: | English |
"Catter Company purchased equipment on November 15, 2008. The company paid $10,000 cash and borrowed the remaining balance of $90,000 from its bank for a period of 10 years at an annual interest rate of 12%. The note is payable in monthly installments of $1,250.
a- Prepare a partial amortization table showing the original balance of this note, and the allocation of the first two monthly payments between interest expense and the reduction in the note’s unpaid balance.
b- Prepare journal entries on November 15 to record receipt of the note, December 15, January 15 to record the monthly payment, and on December 31 to record the adjusting entry.
"
"Catter Company purchased equipment on November 15, 2008. The company paid $10,000 cash and borrowed the remaining balance of $90,000 from its bank for a period of 10 years at an annual interest rate of 12%. The note is payable in monthly installments of $1,250.
a- Prepare a partial amortization table showing the original balance of this note, and the allocation of the first two monthly payments between interest expense and the reduction in the note’s unpaid balance.
b- Prepare journal entries on November 15 to record receipt of the note, December 15, January 15 to record the monthly payment, and on December 31 to record the adjusting entry.
"
