Pad? * 54% - . 3:44 PM ? edugen.wileyplus.com ACCT2293 MESSAGE MY INSTRUCTOR STA

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Pad? * 54% - . 3:44 PM ? edugen.wileyplus.com ACCT2293 MESSAGE MY INSTRUCTOR STANDARD VIEW PRINTER VERSION BACK NEXT ASSIGNMENT RESOURCES Problem 10-3A On September 30, 2017, Coldwater Corporation purchased equipment for $1,330,000. The equipment was purchased with a $90,000 down payment and a three-year, 5%, $1,240,000 bank loan for the balance. The terms provide for payment of the bank loan with quarterly fixed principal payments of $103,333, plus interest, starting on December 31. Coldwater has a November 30 year end and records adjusting entries annually HW Chapter 10 Problem 10-3A Problem 10-9A (Par Record the purchase of equipment on September 30, 2017. (Round answers to the nearest whole dollar, e.g. 5,275 Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Problem 10-10A (Part Level Submission Date Account Titles and Explanation Debit Credit Sept. 30 Objective SHOW LIST OF ACCOUNTS LINK TO TEXT Record the accrual of interest expense on November 30, 2017. (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Nov. 30 SHOW LIST OF ACCOUNTS LINK TO TEXT

Explanation / Answer

Case-1 Journal Entries: Date Accounts title and explanations Debit $ Credit $ 30-Sep Equipment Dr. 1330000      Cash Account 90000      Bank loan payable 1240000 30-Nov Interest expense Dr. (1240,000*5%*2/12) 10333     Interest payable 10333 Dec 31 2017 Interest payable Dr. 10333 Interest expense Dr. (1240,000*5%*1/12) 5167 bank loan payable 103,333      Cash Account 118,833 31-Mar-18 Interest expense Dr. (1240,000-103,333)*5%*1/4) 14208 Bank loan payable Dr. 103333    Cash Account 117541 Case-2 Journal Entries: Date Accounts title and explanations Debit $ Credit $ 30-Nov Interest expense Dr. (1240,000*5%*2/12) 10333     Interest payable 10333 Dec 31 2017 Interest payable Dr. 10333 Interest expense Dr. (1240,000*5%*1/12) 5167 bank loan payable 96,420      Cash Account 111,920 31-Mar-18 Interest expense Dr. (1240,000-96420)*5%*1/4) 14295 Bank loan payable Dr. 97625    Cash Account 111920

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