Answer:
1)
Date |
Account title & explanation |
Debit ($) |
Credit ($) |
September 31, 2017 |
Equipment |
1,030,000 |
|
……Cash |
80,000 |
||
……Bank loan |
950,000 |
||
(to record the purchase of equipment) |
2)
Date |
Account title & explanation |
Debit ($) |
Credit ($) |
November 30, 2017 |
Interest expense ($950,000×3%×2/12) |
4,750 |
|
……Interest payable |
4,750 |
||
(to record the accrued interest expense) |
3)
Date |
Account title & explanation |
Debit ($) |
Credit ($) |
December 31, 2017 |
Bank loan |
79,167 |
|
Interest expense ($950,000×3%×3/12) |
7,125 |
||
……Cash |
86,292 |
||
(to record the first installment payment) |
|||
March 31, 2018 |
Bank loan |
79,167 |
|
Interest expense ($950,000×3%×3/12) |
7,125 |
||
……Cash |
86,292 |
||
(to record the second installment payment) |
4)
Date |
Account title & explanation |
Debit ($) |
Credit ($) |
November 30, 2017 |
Interest expense ($950,000×3%×2/12) |
4,750 |
|
……Interest payable |
4,750 |
||
(to record the accrued interest expense) |
|||
December 31, 2017 |
Bank loan |
83,079 |
|
……Cash |
83,079 |
||
(to record first installment payment) |
|||
March 31, 2018 |
Bank loan |
83,079 |
|
……Cash |
83,079 |
||
(to record second installment payment) |
Problem 10-3A On September 30, 2017 Coldwater Corporation purchased equipment for $1.030,000. The equipment was purchased...
Problem 10-3A On September 30, 2017, Coldwater Corporation purchased equipment for $940,000. The equipment was purchased with a $100,000 down payment and a three-year, 5%, $840,000 bank loan for the balance. The terms provide for payment of the bank loan with quarterly fixed principal payments of $70,000, plus interest, starting on December 31. Coldwater has a November 30 year end and records adjusting entries annually. Record the purchase of equipment on September 30, 2017. (Round answers to the nearest whole...
Problem 10-3A On September 30, 2017, Coldwater Corporation purchased equipment for $940,000. The equipment was purchased with a $100,000 down payment and a three-year, 5%, $840,000 bank loan for the balance. The terms provide for payment of the bank loan with quarterly fixed principal payments of $70,000, plus interest, starting on December 31. Coldwater has a November 30 year end and records adjusting entries annually. Record the purchase of equipment on September 30, 2017. (Round answers to the nearest whole...
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Problem 10-3A On September 30, 2017, Coldwater Corporation purchased equipment for $940,000. The equipment was purchased with a $100,000 down payment and a three-year, 5%, $840,000 bank loan for the balance. The terms provide for payment of the bank loan with quarterly fixed principal payments of $70,000, plus interest, starting on December 31. Coldwater has a November 30 year end and records adjusting entries annually. Record the purchase of equipment on September 30, 2017. (Round answers to the nearest whole...
On September 30, 2017, Coldwater Corporation purchased equipment for $1,030,000. The equipment was purchased with a $80,000 down payment and a three-year, 4%, $950,000 bank loan for the balance. The terms provide for payment of the bank loan with quarterly fixed principal payments of $79,167, plus interest, starting on December 31. Coldwater has a November 30 year end and records adjusting entries annually. Record the purchase of equipment on September 30, 2017. (Round answers to the nearest whole dollar, e.g....
Problem 10-3A On September 30, 2017, Coldwater Corporation purchased equipment for $1,030,000. The equipment was purchased with a $80,000 down payment and a three-year, 3%, 5950,000 bank loan for the balance. The terms provide for payment of the bank loan with quarterly fixed principal payments of $79,167, plus interest, starting on December 31. Coldwater has a November 30 year end and records adjusting entries annually. Record the purchase of equipment on September 30, 2017. (Round answers to the nearest whole...
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