Question

DueNorth Mining Inc. purchased some crushing equipment on May 1, 2020 for $308,000. A down payment of $28,000 was required and the remainder was financed with a installment on payable over 5 years with payments made on a quarterly basis. The quarterly payments required are 516,714 and include both interest and principal. The following is an extract from the loan amortization table the supplier provided to DueNorth : Ending loan Payment Dates 9/30/20 12/31/20 3/31/21 6/30/21 9/30/21 12/31/21 Beginning loan balance $280,000 268,186 256,165 243,934 231,489 218,826 Payment Interest $16,714 $4,900 16,714 4,693 16,714 4,483 16,714 4,269 16,714 4,051 16,714 3,829 Principal $11,814 12,021 12,231 12,445 12,663 12,885 balance $268,186 256,165 243,934 231.489 218,826 205,941 Your answer is partially correct. Try again. Prepare the journal entries for the purchase of the equipment and the first 2 quarterly payments in 2020 (use Long-Term Loan Payable account). (Credit account titles are automatically Indented when amount is entered. Do not indent manually. Ir no entry is required, select "Me Entry for the accounts and enter for the amounts.) Date July 1, 2020 Account Titles and Explanation crushing Equipment Ī Cash Nate Davale A nicion of the

please help with the corrections

Answer 1

Date	Accont Tittle & Explanation	Debit	Credit
1-Jul-20	Crushing Equipment	$308,000.00
	Cash		$28,000.00
	Long Term Loan Payable Account		$280,000.00
30-Sep-20	Interest Expense	$4,900.00
	Long Term Loan Payable Account	$11,814.00
	Cash		$16,714.00
31-Dec-20	Interest Expense	$4,693.00
	Long Term Loan Payable Account	$12,021.00
	Cash		$16,714.00