Question

Consider the following payable transactions of Catico Video Productions Click the icon to view the transactions) Journalize the transactions for the company Record debitis first the credits Select the explanation on the last line of the jumal entry table) 1. 2017 Purchased e m ent costing $52.000 by issuing a one-year 9 note payable Accounts and explanation Debit 1 More info Jut 2017 1 Purchased equipment conting 32.000 by issuing a one-year 9% note payable Dec 31 Accrued interest on the note payable 2018 Jul 1Paid the note payable plus interest at maturity Purchased out in exchange for Y o te Dec 31, 2017 Accrued interest on the note payable Accounts and Explanation Pin Done Choose toman storender any number in the outles and he continue to the next question ge

Answer 1

Date	Account titles and explanation	Debit	Credit
01-Jul	Equipment	$32,000
	Note payable		$32,000
	(Equipment purchased by issuing note paybale)
31-Dec	Interest expense	$1,440		(32,000*9%*6/12)
	Interest payable on note		$1,440	(32,000*9%*6/12)
	(Interest accrued on note payable)
01-Jul	Interest expense	$1,440
	Interest payable on note	$1,440
	Note payable	$32,000
	Cash		$34,880
	(Interest expense booked and note payable repaid)