E12-18 (similar to Question Help Consider the following note payable transaction
ID: 2575158 • Letter: E
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E12-18 (similar to Question Help Consider the following note payable transactions of Campbell Video Productions (Click the icon to view the transactions.) Requirements Journalize the transactions for the company 2. Considering the given transactions only, what are Campbell Video Productions' total liabilities on December 31, 2019 Requirement 1. Journalize the transactions for the company. (Record debits first, then credits. Select explanations on the last line of the journal entry Apr 1, 2018 Purchased equipment cost ng $198,000 by issuing a nine-year 8% note payable. The note requires annual principal payments of $22,000 plus interest each April 1 Accounts and Explanation Debit Credit Date 2018 Apr. 1 Choose from any list or enter any number in the input fields and then click Check Answer. parts remaining Clear Al Check AnswerExplanation / Answer
Answer = 1 Date JOURNAL Jounral Debit Credit Apr, 01 2018 Equipment 1,98,000.00 To 8% Note Payable 1,98,000.00 (Being Equipment is purchased against 8% note) Dec, 31 2018 Interest Expenses (198,000 * 8% *9/12) 11,880.00 To interest Payable 11,880.00 (Being interest is payable for the year end against 8% note payable ) Apr, 01 2019 8% note Payable $ 22,000 Interest Expenses (198,000 * 8% *3/12) $ 3,960 Interest Payable $ 11,880 To Cash Account 37,840.00 (Being first installment with interest is paid) Dec , 31 2019 Interest Expenses (176,000 * 8% *9/12) 10,560.00 To interest Payable 10,560.00 (Being interest is payable for the year end against 8% note payable ) ANSWER =2 Total Liabilities as on December 31, 2019 8% Note Payable ($ 198,000 - $ 22,000) $ 1,76,000 Interest on note Payable $ 10,560.00 Total Laibility = $ 1,86,560
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