Cash is wrong account here because it is not a payment entry but it is treated as due entry. after due entry there should be payment entry. In due entry note payable should be credited and in payment entry notes payable should be debited and cash should be credited. Hence cash account is wrong.
why is the cash account wrong On January 1, 2020, Cheyenne Company makes the two following...
On January 1, 2020, Carter Company makes the two following acquisitions. 1. Purchases land having a fair value of $ 200,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $337,012. 2. Purchases equipment by issuing a 6%, 8-year promissory note having a maturity value of $250,000 (interest payable annually). The company has to pay 11% interest for funds from its bank. (a) Record the two journal entries that should be recorded by Carter Company for the...
On January 1, 2020, Shamrock Company makes the two following acquisitions. 1. Purchases land having a fair value of $220,000 by issuing a 4-year, zero-interest-bearing promissory note in the face amount of $333,975. 2. Purchases equipment by issuing a 7%, 8-year promissory note having a maturity value of $340,000 (interest payable annually). The company has to pay 11% interest for funds from its bank. (a) Record the two journal entries that should be recorded by Shamrock Company for the two...
On January 1, 2017, Cheyenne Company makes the two following
acquisitions.
1.
Purchases land having a fair value of $320,000 by issuing a
4-year, zero-interest-bearing promissory note in the face amount of
$485,782.
2.
Purchases equipment by issuing a 6%, 9-year promissory note
having a maturity value of $360,000 (interest payable annually on
January 1).
The company has to pay 11% interest for funds from its
bank.
(a)
Record the two journal entries that should be recorded by
Cheyenne Company...
On January 1, 2020, Sunland Company makes the two following acquisitions. 1. Purchases land having a fair value of $360,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $606,621. 2. Purchases equipment by issuing a 7%, 8-year promissory note having a maturity value of $560,000 (interest payable annually). The company has to pay 11% interest for funds from its bank. (a) Record the two journal entries that should be recorded by Sunland Company for the two...
On January 1, 2020, Carter Company makes the two following
acquisitions.
1.
Purchases land having a fair
value of $200,000 by issuing a 5-year, zero-interest-bearing
promissory note in the face amount of $337,012.
2.
Purchases equipment by
issuing a 6%, 8-year promissory note having a maturity value of
$250,000 (interest payable annually).
The company has to pay 11% interest for funds from its
bank.
(a)
Record the two journal
entries that should be recorded by Carter Company for the two...
Exercise 14-16 On January 1, 2020, Blue Sky Company makes the two following acquisitions. 1. Purchases land having a fair value of $360,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $606,621. 2. Purchases equipment by issuing a 7%, 8-year promissory note having a maturity value of $560,000 (interest payable annually). The company has to pay 11% interest for funds from its bank. (a) Record the two journal entries that should be recorded by Blue Sky...
On January 1, 2020, Sandhill Company makes the two following
acquisitions.
1.
Purchases land having a fair value of $290,000 by issuing a
5-year, zero-interest-bearing promissory note in the face amount of
$467,048.
2.
Purchases equipment by issuing a 7%, 9-year promissory note
having a maturity value of $450,000 (interest payable
annually).
The company has to pay 10% interest for funds from its
bank.
(a)
Record the two journal entries that should be recorded by
Sandhill Company for the two...
On January 1, 2017, Vaughn Company makes the two following acquisitions. 1. Purchases land having a fair value of $290,000 by issuing a 4-year, zero-interest-bearing promissory note in the face amount of $440,240. 2. Purchases equipment by issuing a 6%, 8-year promissory note having a maturity value of $430,000 (interest payable annually on January 1). The company has to pay 11% interest for funds from its bank. (a) Record the two journal entries that should be recorded by Vaughn Company...
Exercise 14-16 On January 1, 2017, Martinez Company makes the two following acquisitions. 1. Purchases land having a fair value of $160,000 by issuing a 4-year, zero-interest-bearing promissory note in the face amount of $251,763. 2. Purchases equipment by issuing a 7%, 8-year promissory note having a maturity value of $270,000 (interest payable annually on January 1). The company has to pay 12% interest for funds from its bank. Record the two journal entries that should be recorded by Martinez...
On January 1, 2020, Flint Company makes the two following
acquisitions.
1.
Purchases land having a fair value of $160,000 by issuing a
4-year, zero-interest-bearing promissory note in the face amount of
$251,763.
2.
Purchases equipment by issuing a 7%, 8-year promissory note
having a maturity value of $270,000 (interest payable
annually).
The company has to pay 12% interest for funds from its
bank.
(a)
Record the two journal entries that should be recorded by Flint
Company for the two...