On September 1 , 2 0 2 3 , Blossom Ltd purchased equipment for ( $ 3 8 , 4 0 0 ) by signing a two year note payable with a face value of ( $ 3 8 , 4 0 0 ) due on September 1 , 2 0 2 5 The going rate of interest for this level of risk was ( 8 ) The company has a December 3 1 year end ( The tables in this problem are to be used as a reference for this problem ) Click here to view Table A 2 PRESENT VALUE OF 1 ( PRESENT VALUE OF A SINGLE SUM ) Click here to view Table A 4 PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 ( a ) Your answer is correct Calculate the cost of the equipment, where necessary using any of the three methods ( tables , financial calculator, or Excel ) , assuming the note is as follows ( Round factor values to 5 decimal places, e g 1 2 5 1 2 4 and final answers to 0 decimal places, e g 5 , 2 7 5 ) 1 An ( 8 ) interest bearing note, with interest due each September 1 2 A ( 2 ) interest bearing note, with interest due each September 1 3 A non interest bearing note 1 An ( 8 ) interest bearing note Cost of the Equipment 2 A ( 2 ) interest bearing note ( $ ) 3 A non interest bearing note $ Record all journal entries from September 1 , 2 0 2 3 , to September 1 , 2 0 2 5 , for an ( 8 ) interest bearing note, with interest due each September 1 Ignore depreciation 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 Ofor the amounts Record journal entries in the order presented in the problem List all debit entries before credit entries Round answers to O decimal places, eg 5 , 2 7 5 ) Date Account Titles and Explanation Notes Payable 1 3 1 2 3 Interest Payable Interest Payable Interest Expense Cash 1 3 1 2 4 2 5 Interest Payable Interest Expense Interest Payable Notes Payable Record all journal entries from September 1 , 2 0 2 3 , to September 1 , 2 0 2 5 , for a ( 2 ) interest bearing note, with interest due each September 1 Ignore depreciation 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 Record journal entries in the order presented in the problem List all debit entries before credit entries Round answers to 0 decimal places, e g 5 , 2 7 5 ) ate Account Titles and Explanation Equipment Notes Payable Interest Expense Interest Payable Interest Payable Interest Expense Notes Payable Cash Interest Expense Interest Payable ( ) ( ) Interest Payable Notes Payable Interest Payable Interest Expense Notes Payable Record all journal entries from September 1 , 2 0 2 3 , to September 1 , 2 0 2 5 , for a 2 interest bearing note, with interest due each September 1 Ignore depreciation 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 O for the amounts Record journal entries in the order presented in the problem List all debit entries before credit entries Round answers to O decimal places, eg 5 , 2 7 5 ) late 2 3 Equipment Notes Payable Interest Expense Interest Payable Interest Expense Notes Payable Cash Interest Expense Interest payable Notes Prabable Interest Payable Interest Expense Notes Payable Show all images Show all images Show all images done loading

Question

On September 1 , 2 0 2 3 , Blossom Ltd   purchased equipment for   (   $ 3 8 , 4 0 0   ) by signing a two   year note payable with a face value of   (   $ 3 8 , 4 0 0   ) due on September 1 , 2 0 2 5   The going rate of interest for this level of risk was   ( 8       )   The company has a December 3 1 year end  ( The tables in this problem are to be used as a reference for this problem  ) Click here to view Table A   2   PRESENT VALUE OF 1   ( PRESENT VALUE OF A SINGLE SUM ) Click here to view Table A   4   PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 ( a ) Your answer is correct  Calculate the cost of the equipment, where necessary using any of the three methods ( tables , financial calculator, or Excel ) , assuming the note is as follows  ( Round factor values to 5 decimal places, e   g   1   2 5 1 2 4 and final answers to 0 decimal places, e   g   5 , 2 7 5   ) 1   An   ( 8       ) interest   bearing note, with interest due each September 1   2   A   ( 2       ) interest   bearing note, with interest due each September 1   3   A non   interest   bearing note  1   An   ( 8       ) interest   bearing note Cost of the Equipment 2   A   ( 2       ) interest   bearing note   (   $   ) 3   A non   interest   bearing note   $ Record all journal entries from September 1 , 2 0 2 3 , to September 1 , 2 0 2 5 , for an   ( 8       ) interest   bearing note, with interest due each September 1   Ignore depreciation 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 Ofor the amounts  Record journal entries in the order presented in the problem  List all debit entries before credit entries  Round answers to O decimal places, eg   5 , 2 7 5   ) Date Account Titles and Explanation Notes Payable 1 3 1   2 3 Interest Payable Interest Payable Interest Expense Cash 1 3 1   2 4 2 5 Interest Payable Interest Expense Interest Payable Notes Payable Record all journal entries from September 1 , 2 0 2 3 , to September 1 , 2 0 2 5 , for a   ( 2       ) interest   bearing note, with interest due each September 1   Ignore depreciation 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  Record journal entries in the order presented in the problem  List all debit entries before credit entries  Round answers to 0 decimal places, e   g   5 , 2 7 5   ) ate Account Titles and Explanation Equipment Notes Payable Interest Expense Interest Payable Interest Payable Interest Expense Notes Payable Cash Interest Expense Interest Payable   (     )   (     ) Interest Payable Notes Payable Interest Payable Interest Expense Notes Payable Record all journal entries from September 1 , 2 0 2 3 , to September 1 , 2 0 2 5 , for a 2     interest   bearing note, with interest due each September 1   Ignore depreciation 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 O for the amounts  Record journal entries in the order presented in the problem  List all debit entries before credit entries  Round answers to O decimal places, eg   5 , 2 7 5   ) late 2 3 Equipment Notes Payable Interest Expense Interest Payable Interest Expense Notes Payable Cash Interest Expense Interest payable Notes Prabable Interest Payable Interest Expense Notes Payable Show all images Show all images Show all images done loading

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Question: On September 1 , 2 0 2 3 , Blossom Ltd . purchased equipment for ( $ 3 8 , 4 0 0

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