On March 1, fixtures and equipment were purchased for $4,000 with a downpayment of $2,000 plus a $2,000 note payable in one year. Interest of 7% per year is due when the note is repaid. The estimated life of the fixtures and equipment is 10 years with no expected salvage value. Depreciation on the fixtures and equipment is computed on a straight-line basis. [Note: Record the March 1 equipment purchase first, then the March 31 depreciation adjusting entry, and finally the March 31 interest adjusting entry. Also, round all answers to the nearest cent.]
Options for Account portion:
- Cash
- Accounts Recievable
- Inventory
- Prepaid Rent
- Fixtures and Equipment
- Accounts Payable
- Interest Payable
- Wages Payable
- Notes Payable
- Paid-In Capital
- Retained Earnings
- Leave Blank