Ask Question
BusinessBusiness
17 January, 10:57

Emma Company purchased a machine from Noah Corporation on October 31, 2016. In payment for the $234,000 purchase, Emma issued a one-year installment note to be paid in equal monthly payments of $20,791 at the end of each month. The payments include interest at an annual rate of 12%. When recording the December 31, 2016 payment, the Debit to Interest expense will be

+5
Answers (1)
  1. 17 January, 12:55
    0
    On December 31, 2016 the debit to interest expense will be $2,155

    Explanation:

    Use Following Amortization Schedule to calculate the interest expense on December 31, 2016.

    Date Balance Payment Interest 12% Principal payment

    November 30 234,000 20791 2340 18,451

    December 31 215,549 20791 2155.49 18635.51

    on December 31, 2016 the debit to interest expense will be $2,155.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Emma Company purchased a machine from Noah Corporation on October 31, 2016. In payment for the $234,000 purchase, Emma issued a one-year ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
On November 30, 2013, Piani Incorporated purchased for cash of $25 per share all 400,000 shares of the outstanding common stock of Surge Company. Surge 's balance sheet at November 30, 2013, showed a book value of $8,000,000.
Answers (1)
Which of the following represents the predictable sequence of stages in team development? storming, norming, performing, forming, and adjourning forming, storming, norming, performing, and adjourning performing, forming, norming, storming, and
Answers (2)
Someone who likes building, designing, or creating things probably has a (n)
Answers (1)
A construction and building inspector is checking the site of a pre-construction demolition. What items would the inspector expect to be present as part of a review? (Select all that apply.
Answers (1)
In 1971 the US dollar became part of a total fiat system meaning what? A. It could no longer be divided into equivalent units B. It could no longer be used as a medium of exchange C. It could no longer serve as a storehouse or value D.
Answers (1)
New Questions in Business
If a client chooses to pay premiums other than annually, what can he or she expect?
Answers (1)
Antone Company sells office equipment on July 31, 2017, for $21,000 cash. The office equipment originally cost $72,000 and as of January 1, 2017, had accumulated depreciation of $42,000. Depreciation for the first 7 months of 2017 is $4,600.
Answers (1)
An entrepreneur who plans to open a cuban restaurant in nashville has a 20 percent chance of success. which kind of probability is it
Answers (1)
Which of the following steps in a measuring system involves implementing an effective recognition system?
Answers (1)
Firm X and Firm Y both sell the same products at the same price; both firms are the same size with identical sales levels; Firm X has lower fixed costs and higher variable operating costs than Firm Y.
Answers (1)
Home » Business » Emma Company purchased a machine from Noah Corporation on October 31, 2016. In payment for the $234,000 purchase, Emma issued a one-year installment note to be paid in equal monthly payments of $20,791 at the end of each month.
Sign Up Forgot Password?