Federated Express purchased equipment costing $75,000 on October 2,2017 , by paying 30% down and signing an 8%, 120 days  note payable for the balance. Federated's year end is December 31. 

1) Prepare journal entries to: 

a) record the purchase of the equipment on October 2,2017 

b) record the accrual of interest on December 31,2017 

c) record payment of the note on January 30,2018 

2) Determine the balance of any current liabilities associated with the note as of December 31, 2017 and show how they would appear on the Balance Sheet.

  

Answer rating: 100% (QA)

Journal Entries a Record the purchase of the equipment on October 2 2017 Date ... View the full answer