Question

please answer all three it is in the same question

Exercise 10-15 Metlack Corporation purchased a computer on December 31, 2019, for $134,400, praying $38,400 down and agreeing to pay the balance in five equal installments of $19,200 payable each December 31 beginning in 2020. An assumed interest rate of simplicit in the purchase price Prepare the malty at the date of purchase. (Round factor was to decimal es and finalawwere te decimal places... 52.75 Credit account titles are automatically indented when amount is entered. De not indent mana. Ir ne entry is required, select "No Entry for the account titles and enter for the amounts.) Date Account Thies and Explanation Debit Credit December 31, 2019 Eument 115060 Discount s Payable Notes Payable 96000 Cash 38400

Answer 1

  

Ans:

1)

Date	Account Title and Explanation	Debit	Credit
December 31 2019	Equipment	115060
	Discount on Notes Payable	19340
	Notes Payable		96000
	Cash		38400
(Recorded Purchase of Equipment)

2)

Date	Account Title and Explanation	Debit	Credit
December 31 2020	Interest Expenses	6133
	Notes Payable	19200
	Discount on Notes Payable		6133
	Cash		19200
(Recorded Payment of 1st instalment & interest expenses)

3)

Date	Account Title and Explanation	Debit	Credit
December 31 2021	Interest Expenses	5087
	Notes Payable	19200
	Discount on Notes Payable		5087
	Cash		19200
(Recorded Payment of 2nd instalment & interest expenses)

Working

1)Notes Payable = 19200*5 = 96000

Equipment = 38400+ 19200*(1-(1+8%)^-5)/8%

Equipment = 115060

Discount on Notes Payable = 134400-115060

Discount on Notes Payable = 19340

2) Interest Expense = (96000-19340)*8% = 6133

Amortisation of Discount = 6133

Unamortised discount = 19340 - 6133 = 13207

3) Interest Expenses = (96000-19200 - 13207)*8% = 5087