Question

Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was coAmber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was coReq 1A Req 1B Reg 2 Req3 Prepare the journal entry on January 1, 2021, for Truax Corporations sale of the lathe. Assume TruaAmber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was coAnswer is not complete. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Reg 2 Req 3 Prepare

Table factors are online.

0 0
Add a comment Improve this question Transcribed image text
Answer #1
n = 3
I = 12%
Cash Flow Amount Present Value
Interest $       27,000 $     3,20,301
Principal $    4,50,000 $        64,849
$     3,85,150
Date Account Titles Debit Credit
Jan-01 Notes Receivable $    4,50,000
       Sales Revenue $     3,85,150
       Discount on notes receivable $        64,850
(Sale of machine)
Cost of Goods Sold $    2,50,000
       Inventory     $     2,50,000
(Cost of goods sold)
Date Account Titles Debit Credit
1 Cash $       27,000
Discount on Notes receivable $       19,218
       Interest Revenue $        46,218
2 Cash $       27,000
Discount on Notes receivable $       21,524
       Interest Revenue $        48,524
3 Cash $       27,000
Discount on Notes receivable $       24,108
       Interest Revenue $        51,108
4 Cash $    4,50,000
    Notes Receivable $     4,50,000
Add a comment
Know the answer?
Add Answer to:
Table factors are online. Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The...

    Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2021. Amber paid for the lathe by issuing a $800,000, three-year note that specified 5% interest, payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that 9% was a reasonable rate of interest. (FV of $1, PV of...

  • Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The...

    Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2021. Amber paid for the lathe by issuing a $850,000, three-year note that specified 4% Interest, payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that 9% was a reasonable rate of interest. (EV of $1. PV of...

  • Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The...

    Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2021. Amber paid for the lathe by issuing a $850,000, three-year note that specified 4% Interest, payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that 9% was a reasonable rate of interest. (EV of $1. PV of...

  • Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The...

    Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2021. Amber paid for the lathe by issuing a $600,000, three-year note that specified 6% interest, payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that 10% was a reasonable rate of interest. (FV of $1. PV of...

  • Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The...

    Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2018. Amber paid for the lathe by issuing a $600,000, three-year note that specified 4% interest, payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that 12% was a reasonable rate of interest. (FV of $1, PV of...

  • Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The...

    Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2021. Amber paid for the lathe by issuing a $850,000, three-year note that specified 4% interest, payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that 9% was a reasonable rate of interest. (FV of $1, PV of...

  • Amber Mining and Milling, Inc, contracted with Truax Corporation to have constructed a cu completed and...

    Amber Mining and Milling, Inc, contracted with Truax Corporation to have constructed a cu completed and ready for use on January 1, 2018. Amber paid for the lathe stom-made lathe. The machine was by issuing a $500,000 three-year note that specified 4% price of the lathe was unknown. It was determined by interest, payable annually on December 31 of each year. The cash market comparison with similar transactions that 8% was a reasonable rate of interest. PVAD of $) (Use...

  • "AFE 588 Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made...

    "AFE 588 Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2021. Amber paid for the lathe by issuing a $500,000, three year note that specified 5% Interest, payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that 8% was a reasonable rate of interest. (EY of...

  • Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The...

    Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2021. Amber paid for the lathe by issuing a $750,000, three-year note that specified 5% interest, payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that 9% was a reasonable rate of interest. (FV of $1, PV of...

  • Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The...

    Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2021. Amber paid for the lathe by issuing a $750,000, three-year note that specified 4% interest, payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that 9% was a reasonable rate of interest. (FV of $1, PV of...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT