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Main Company_Note Payable Transactions

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Question;Problem - 2;Main Company has a fiscal year ending on December 31. The;company purchased equipment costing $88,000 on Octber 2, 2011. The equipment;was purchased by signing a 9%, 120 - day note payable for the equipment.;1. Prepare the Journal entries to record the following events.;Use a 360-day year and round all amounts to the nearest dollar.;a. The purchase of equipment on October 2, 2011;b. The accrual of interest on December 31, 2011;c. Payment of note on January 30, 2012;2. Determine the;balance of any current liabilities associated the note on December 31, 2011

 

Paper#44640 | Written in 18-Jul-2015

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