On January 1,2018,Gadsby Cabinetry Company purchases $300,000 of equipment by paying $50,000 in cash and signing a 10-year mortgage note at 13% for the balance.Gadsby will make yearly payments of $46,072.The amortization schedule for the first five payments is provided.

Prepare the journal entries for the purchase of the equipment and for the January 1,2019 mortgage payment.Omit explanations.

Question

On January 1,2018,Gadsby Cabinetry Company purchases $300,000 of equipment by paying $50,000 in cash and signing a 10-year mortgage note at 13% for the balance.Gadsby will make yearly payments of $46,072.The amortization schedule for the first five payments is provided.
  
Prepare the journal entries for the purchase of the equipment and for the January 1,2019 mortgage payment.Omit explanations.

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The Answer of On January 1,2018,Gadsby Cabinetry Company purchases $300,000 of equipment by paying $50,000 in cash and signing a 10-year mortgage note at 13% for the balance.Gadsby will make yearly payments of $46,072.The amortization schedule for the first five payments is provided.
  
Prepare the journal entries for the purchase of the equipment and for the January 1,2019 mortgage payment.Omit explanations.

On January 1,2018,Gadsby Cabinetry Company Purchases $300,000 of Equipment by Paying