On January 1,2017,Gaskin 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.Gaskin will make yearly payments of $46,072.The amortization schedule for the first five payments is provided.

Prepare the journal entry for the purchase of the equipment and for the January 1,2018 mortgage payment.

Question

On January 1,2017,Gaskin 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.Gaskin will make yearly payments of $46,072.The amortization schedule for the first five payments is provided.
  
Prepare the journal entry for the purchase of the equipment and for the January 1,2018 mortgage payment.

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The Answer of On January 1,2017,Gaskin 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.Gaskin will make yearly payments of $46,072.The amortization schedule for the first five payments is provided.
  
Prepare the journal entry for the purchase of the equipment and for the January 1,2018 mortgage payment.

On January 1,2017,Gaskin Cabinetry Company Purchases $300,000 of Equipment by Paying