Ptnrshp - Cash Basis
2019 Total Purchase - 45,358
Down Payment - $8,000
Total Financed - 37,358
Deferred Interest 5,344
Total Sales Price - 50,702
5 Pmts - 8,541 - 1st Pmt due 11.1.19
Booking Asset:Initially:
1. Cost: 50,702
2. Liab. 42.702
Correct?
Best Answer Click here
No
So what is the answer?
But your question was "correct?" 😉
The interest amount wouldn't be added to the cost.
So the initial J/E:
Asset 45,358
Cash 8,000
Liab 37,358
That looks much better.
View solution in original post
