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16 August, 05:14

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

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  1. 16 August, 05:42
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    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.
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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.
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