On November 1, 2017, Cullumber Inc. purchased equipment costing $111,500 paying down cash of $82,700 and...

 

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On November 1, 2017, Cullumber Inc. purchased equipment costing $111,500 paying down cash of $82,700 and signing a 11%, 3-month note payable for the remaining balance. Cullumber has a fiscal year end of December 31. AME does not use reversing entries. (a) Prepare the journal entries to record the purchase of the equipment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Date November 1 ▼ (b) Prepare the journal entries to record the year-end interest accrual. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry for the account titles and enter 0 for the amounts.) Debit Credit Date Account Titles and Explanation December 31 SHOW LIST OF ACCOUNTS LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. On November 1, 2017, Cullumber Inc. purchased equipment costing $111,500 paying down cash of $82,700 and signing a 11%, 3-month note payable for the remaining balance. Cullumber has a fiscal year end of December 31. AME does not use reversing entries. (a) Prepare the journal entries to record the purchase of the equipment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Date November 1 ▼ (b) Prepare the journal entries to record the year-end interest accrual. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry for the account titles and enter 0 for the amounts.) Debit Credit Date Account Titles and Explanation December 31 SHOW LIST OF ACCOUNTS LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor.

Answer rating: 100% (QA)

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