Accounting help please with promissory note!!!?

Question

How would I post this onto the general journal?

On December 31, the company purchased office equipment costing $60,000. They paid $15,000 down on the equipment and signed a promissory note for the remaining balance. The note is due March 31, 2007.

This is what I did...please double check for me. Thanks!

Office Equipment (DB) 60,000

Notes Payable (CR) 45,000

Cash (CR) 15,000

Answer 1

Answer:

Yup, that is correct. In addition, the Notes Payable Account should be presented as a current liability in the Statement of Financial Position (Balance Sheet) because it will be due within twelve months from the Statement of Financial Position's date.

Office Equipment should be presented as part of Property, Plant and Equipment in the Statement of Financial Position.

Answer 2

That is correct!