On March 1, fixtures and equipment were purchased for $6,000 with a downpayment
ID: 2534099 • Letter: O
Question
On March 1, fixtures and equipment were purchased for $6,000 with a downpayment of $1,000 and a $5,000 note, payable in one year. Interest of 6% per year was due when the note was repaid. The estimated life of the fixtures and equipment is 10 years with no expected salvage value. [Note: Record the complete entry for the March 1 equipment purchase first, the March 31 depreciation adjusting entry second, and the March 31 interest adjusting entry third. Also, round all answers to the nearest cent.]
Account Cash Account: Fixtures and Equipment Account: Notes Payable Account: Fixtures and Equipment Account: Retained Earnings Account: Interest Payable Account: Retained Earnings Account: Leave Blank Dollar amount: Dollar amount: Dollar amount: Dollar amount: Dollar amount: Dollar amount: Dollar amount: Dollar amount:Explanation / Answer
Cash -1000 Fixtures and equipment 6000 Notes payable 5000 Fixtures and equipment -50.00 =6000/10/12 Retained earnings -50.00 Interest payable 25.00 =5000*6%/12 Retained earnings -25.00
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