Question

Dec 1: Purchased equipment costing $15,608 by taking out a 4-month installment note with First Bank. The note will be paid back in four equal installments of $4,000 at the end of each month for four months. The interest rate on the note is 12% compounded monthly, and the first installment payment is due on December 31, 20X5. Interest calculations are rounded to the nearest whole month and whole dollar. The amortization schedule for this note is as follows: Date Cash Paid Interest Expense Reduction in CV Carrying Value (CV) 12/1/X5 12/31/X5 1/30/X6 2/27/X6 3/31/X6 4,000 4,000 4,000 4,000 156 118 79 39 3,844 3,882 3,921 3,961 15,608 11,764 7,882 3,961 0 Totals 16,000 392 15,608

Please put the following transactions into the General Journal.

Answer 1

Date	Account Name	Ref No	Debit ($)	Credit ($)
Dec-01	Equipment a/c		$          15,608
	To First Bank a/c			$          15,608
Dec-04	Nelson Industries	210-17	$          29,400
	To Cash or Bank			$          29,400
Dec-05	Bad debts		$          11,760
	Discount		$               240
	To Baker	110-12		$          12,000
Dec-07	Hunt Corp	210-22	$            4,000
	To Purchase Returns			$            4,000
Dec-12	Sales Return		$            7,000
	To Wilson	A/R Subsidary Account ledger		$            6,860
	To Discount			$               140
Dec-14	Nelson Industries	210-17	$            2,000
	To Purchase Returns			$            2,000
Dec-18	Deferred Expenses	OM1218	$            9,000
	To Staples Inc			$            9,000
Dec-19	General Expenses		$          15,000
	Utilities Payable a/c			$          15,000
Dec-19	Dividend		$      1,00,000
	To Dividend Payable a/c			$      1,00,000
Dec-22	Land and Building		$      4,60,000
	To Accounts Payable a/c			$      4,60,000
Dec-31	First Bank a/c		$            3,844
	Interst a/c		$               156
	To Cash a/c			$            4,000
Dec-31	Cash or Bank a/c		$          94,080
	To Rogers			$            4,900
	To Winters			$          15,680
	To Dalgado			$          29,400
	To Eastern			$            9,800
	To Townsend			$          34,300
Dec-31	Centennial Inc a/c		$          17,460
	To Cash or Bank a/c			$          17,460