Homework Answers
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Cost of the equipment = Cash paid + Present value of note = 11,400 + 4797 = 16,197 |
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Pearl Co. acquires machinery by paying $11,400 cash and signing a $5,700, 2-year, zero-interest-bearing note payable....
Brief Exercise 10-05 Pearl Corporation purchased a truck by issuing an $86,400, 4-year, zero-interest-bearing note to...
Brief Exercise 10-05 Pearl Corporation purchased a truck by issuing an $86,400, 4-year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 11% Prepare the journal entry to record the purchase of this truck. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimalplaces, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select...
On 12-31-15, Acme purchased a machine. Acme signed a $800,000 zero-interest bearing note. The note is...
On 12-31-15, Acme purchased a machine. Acme signed a $800,000 zero-interest bearing note. The note is payable in full on 12-31-17. Assume an acceptable interest rate on similar notes was 4%. On 12-31-15, Acme incurred and paid $12,000 to have the machine installed in its sales office. In this problem, you can ignore depreciation – we’ll get to that in chapter 11. Prepare the entries Acme should make related to this note on: 12-31-15. 12-31-16. 12-31-17.
On January 1, 2010, Ball Co. exchanged equipment for a $160,000 zero-interest-bearing note due on January...
On January 1, 2010, Ball Co. exchanged equipment for a $160,000 zero-interest-bearing note due on January 1, 2013. The prevailing rate of interest for a note of this type at January 1, 2010 was 10%. The present value of $1 at 10 % for three periods is 0.75. What amount of interest revenue should be included in Abel's 2011 income statement? 2.
1, 2, 3 and 4 please Exercise 11-4 Interest-bearing notes payable with year-end adjustments P1 Check...
1, 2, 3 and 4 please
Exercise 11-4 Interest-bearing notes payable with year-end adjustments P1 Check (2) $3,000 (3) $1,500 Keesha Co, borrows $200,000 cash on November 1 of the current year by signing a 90-day, 9%. $200,000 note. 1. On what date does this note mature? 2. How much interest expense is recorded in the current year? (Assume a 360-day year.) 3. How much interest expense is recorded in the following year? (Assume a 360-day year.) 4. Prepare journal...
Reforged purchased equipment on January 2, 2019. They issued a $500,000, five-year, non-interest bearing note to...
Reforged purchased equipment on January 2, 2019. They issued a $500,000, five-year, non-interest bearing note to C9 Equipment for the new equipment when the market rate of interest for similar transactions was 8%. The company will pay of the note in five $100,000 installments that are due at the end of each year over the life of the note. Needed: a) Prepare an effective interest amortization table for the note for the five-year period. b) Prepare the entries for the...
Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co. borrows $250,000 cash on...
Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co. borrows $250,000 cash on November 1 of the current year by signing a 120-day, 11%, $250,000 note. 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in the current year and the following year from this note? 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of...
Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co. borrows $195,000 cash on...
Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co. borrows $195,000 cash on November 1 of the current year by signing a 150-day, 8%, $195,000 note. 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in the current year and the following year from this note? 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of...
Pandey Inc had the following activities during the month 2 A Borrowed $810.000 cash, signing a...
Pandey Inc had the following activities during the month 2 A Borrowed $810.000 cash, signing a promissory note. 3. Bought a building for $1,020.000 paying $240.000 in cash and signing a promissory note for $780,000 C.Rented equipment at a cost of $21000 per month and issued a check covering six months' rent. D. Provided $160,000 of services and billed customers. E Purchased $52.000 of supplies on account F. Received a utilybill for the current period in the amount of $3,400....
Kingbird Corporation issued a 5-year, $68,000, zero-interest-bearing note to Garcia Company on January 1, 2020, and...
Kingbird Corporation issued a 5-year, $68,000,
zero-interest-bearing note to Garcia Company on January 1, 2020,
and received cash of $68,000. In addition, Kingbird agreed to sell
merchandise to Garcia at an amount less than regular selling price
over the 5-year period. The market rate of interest for similar
notes is 12%.
Prepare Kingbird Corporation’s January 1 journal entry.
(Round present value factor calculations to 5 decimal
places, e.g. 1.25124 and final answer to 0 decimal places, e.g.
38,548. If no...
Bref Exercise 10-05 Martinez Corporation purchased a truck by issuing an $110,400, 4 year, zero-interest-bearing note...
Bref Exercise 10-05 Martinez Corporation purchased a truck by issuing an $110,400, 4 year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 9%. Prepare the journal entry to record the purchase of the truck (Round present value factor calculations te decimal places 1.25124 and final answers to decimal places 5.275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry...
Brief Exercise 10-05 Pearl Corporation purchased a truck by issuing an $86,400, 4-year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 11% Prepare the journal entry to record the purchase of this truck. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimalplaces, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select...
On January 1, 2010, Ball Co. exchanged equipment for a $160,000 zero-interest-bearing note due on January 1, 2013. The prevailing rate of interest for a note of this type at January 1, 2010 was 10%. The present value of $1 at 10 % for three periods is 0.75. What amount of interest revenue should be included in Abel's 2011 income statement? 2.
1, 2, 3 and 4 please
Exercise 11-4 Interest-bearing notes payable with year-end adjustments P1 Check (2) $3,000 (3) $1,500 Keesha Co, borrows $200,000 cash on November 1 of the current year by signing a 90-day, 9%. $200,000 note. 1. On what date does this note mature? 2. How much interest expense is recorded in the current year? (Assume a 360-day year.) 3. How much interest expense is recorded in the following year? (Assume a 360-day year.) 4. Prepare journal...
Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co. borrows $250,000 cash on November 1 of the current year by signing a 120-day, 11%, $250,000 note. 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in the current year and the following year from this note? 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of...
Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co. borrows $195,000 cash on November 1 of the current year by signing a 150-day, 8%, $195,000 note. 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in the current year and the following year from this note? 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of...
Pandey Inc had the following activities during the month 2 A Borrowed $810.000 cash, signing a promissory note. 3. Bought a building for $1,020.000 paying $240.000 in cash and signing a promissory note for $780,000 C.Rented equipment at a cost of $21000 per month and issued a check covering six months' rent. D. Provided $160,000 of services and billed customers. E Purchased $52.000 of supplies on account F. Received a utilybill for the current period in the amount of $3,400....
Kingbird Corporation issued a 5-year, $68,000,
zero-interest-bearing note to Garcia Company on January 1, 2020,
and received cash of $68,000. In addition, Kingbird agreed to sell
merchandise to Garcia at an amount less than regular selling price
over the 5-year period. The market rate of interest for similar
notes is 12%.
Prepare Kingbird Corporation’s January 1 journal entry.
(Round present value factor calculations to 5 decimal
places, e.g. 1.25124 and final answer to 0 decimal places, e.g.
38,548. If no...
Bref Exercise 10-05 Martinez Corporation purchased a truck by issuing an $110,400, 4 year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 9%. Prepare the journal entry to record the purchase of the truck (Round present value factor calculations te decimal places 1.25124 and final answers to decimal places 5.275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry...
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