Answer and Explanation:
The Journal entry is shown below:-
Cash A/c Dr, $20,000
Accounts Receivables A/c Dr, $140,000
($145,000 - $5,000)
Inventory A/c Dr, $101,700
Equipment A/c Dr, $81,200.
To Allowance for doubtful Accounts $4,400
To Payne's Capital A/c $338,500
(Being assets contributed by partner in business is recorded)
For recording the assets contributed by partner in business we simply debited the cash account, accounts Receivables, Inventory and Equipment as increase the assets while we credited the Allowance for doubtful Accounts as it decreasing the assets and Payne's Capital as increasing the stockholder equity.
Land, labor, capital, and entrepreneurship
Low price.discount sale improve market.
Answer:
The principal balance is $151,573
Explanation:
For computing the principal balance, we need the following calculation which is shown below:
1. First we have to compute the 1 month interest payment which equals to
= Note amount × rate × 1 month ÷ total months in a year
= $152,000 × 14% × 1 ÷ 12
= 1773.33
2. Now deduct the first month interest from installment amount which equals to
= Installment amount - Interest amount
= $2,200 - $1773.33
= $426.67
3. Now subtract step 2 amount from notes amount which equals to
= Notes amount - principal amount
= $152,000 - $426.67
= $151,573.33
Hence, the principal balance is $151,573
