B-12.03 Problem

B-12.03 Problem - September 30, 20X5 . October 1, 20X4 J.D....

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B-12.03 On October 1, 20X4, Farmer Engineering Services purchased a new laser surveying instrument. Farmer paid $5,000 down and executed the following promissory note: FOR VALUE RECEIVED, the undersigned promises to pay to the order of Laser Equipment Company the sum of: *******TWENTY-THOUSAND AND NO/100 Dollars******* ($20,000) with annual interest of 10% on any unpaid balance. This note shall mature and be payable, along with accrued interest, on
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Unformatted text preview: September 30, 20X5 . October 1, 20X4 J.D. Farmer Farmer Engineering Issue Date Signature (a) Prepare the appropriate journal entry to record the purchase on October 1, 20X4. (b) Prepare the appropriate journal entry to record the year-end interest accrual on December 31, 20X4. (c) Prepare the appropriate journal entry to record the payment of the note and accrued interest on September 30, 20X5....
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