Bramble Bear Inc. is a retailer of nursery furniture. On April 1, 2020, Bramble sold a...
Bramble Bear Inc. is a retailer of nursery furniture. On April 1, 2020, Bramble sold a nursery set to a customer and received a $3,400 3-year non-interest bearing note. Bramble has a December 31 year end and the market rate of interest is 6%.
Click here to view the factor table PRESENT VALUE OF 1.
Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF
1.
Calculate the amount of the sale. Use 1. PV.1 Tables, 2. a
financial calculator, or 3. Excel functions to arrive at the amount
to record the note receivable. (Round present value factor
calculations to 5 decimal places, e.g. 1.25124 and final answers to
0 decimal places, e.g. 8,971.)
Note receivable
$ _______________
Record all entries associated with the note receivable for the first year of the note. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 8,971.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
| April 1, 2020December 31, 2020 | |||
| April 1, 2020December 31, 2020 | |||
How will the accounts used in the transactions in part b. be
reported on the statement of comprehensive income and the statement
of financial position.
|
Statement of comprehensive income: |
||||||
|
$ |
||||||
|
Statement of financial position: |
||||||
|
account tittle> |
$ |
|||||
Homework Answers
1. Using excel function, PV of the note receivable = $2855
Workings:
| NPER | 3 | |
| FV | 3400 | |
| PMT | 0.0 | |
| Rate | 6.00% | |
| PV | $2,855 | [-pv(rate,nper,pmt,fv,0) |
2.
| Date | Account Titles and Explanation | Debit | Credit |
| April 1, 2020 | Notes receivable | 2855 | |
| Sales revenue | 2855 | ||
| Dec 1,2020 | Notes receivable | 128 | |
| Interest income | 128 | ||
| [2855 *6% *9/12] |
3.
| Statement of comprehensive income: | |
| Sales revenue | 2855 |
| Interest Income | 128 |
| Statement of financial position: | |
| Notes receivable | 2983 |
| [2855+128] |
Add Answer to:
Bramble Bear Inc. is a retailer of nursery furniture. On April
1, 2020, Bramble sold a...
Bramble Corporation, a publicly-traded company, agreed to loan money to another company. On July 1, 2020,...
Bramble Corporation, a publicly-traded company, agreed to loan money to another company. On July 1, 2020, the company received a five-year promissory note with a face value of $503,000, paying interest at a face rate of 6% on July 1 each year. The note was issued to yield an effective interest rate of 7%. Bramble used the effective interest method of amortization for discounts or premiums, and the company’s year-end is September 30. Use 1. PV.1 Tables, 2. a financial...
Bramble Corp. erected and placed into service an offshore oil platform on January 1, 2020, at...
Bramble Corp. erected and placed into service an offshore oil platform on January 1, 2020, at a cost of $8 million. Bramble is legally required to dismantle and remove the platform at the end of its 7-year useful life. Bramble estimates that it will cost $1 million to dismantle and remove the platform at the end of its useful life and that the discount rate to use should be 6%. Use (a) factor Table A.2, (b) a financial calculator, or...
Question 6 Bramble Inc. acquired 20% of the outstanding common shares of Gregson Inc. on December...
Question 6 Bramble Inc. acquired 20% of the outstanding common shares of Gregson Inc. on December 31, 2019. The purchase price was $1,000,000 for 50,000 shares, and is equal to 20% of Gregson's carrying amount. Gregson declared and paid a $0.85 per share cash dividend on June 15 and again on December 15, 2020. Gregson reported net income of $545,000 for 2020. The fair value of Gregson's shares was $25 per share at December 31, 2020. Bramble is a public...
On January 1, 2020, Bramble Corporation sold a building that cost $274.380 and that had accumulated...
On January 1, 2020, Bramble Corporation sold a building that cost $274.380 and that had accumulated depreciation of $105,010 on the date of sale. Bramble received as consideration a $264,380 non-interest-bearing note due on January 1, 2023. There was no established exchange price for the building, and the note had na ready market. The prevailing rate of interest for a note of this type on January 1, 2020 was 12%. At what amount should the gain from the sale of...
On January 1, 2017, Bramble Corporation signed a 5-year noncancelable lease for a machine. The terms...
On January 1, 2017, Bramble Corporation signed a 5-year noncancelable lease for a machine. The terms of the lease called for Bramble to make annual payments of $8,176 at the beginning of each year, starting January 1, 2017. The machine has an estimated useful life of 6 years and a $5,000 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Bramble uses the straight-line method of depreciation for all of its plant...
On January 1, 2020, Lesley Benjamin signed an agreement, covering 5 years, to operate as a...
On January 1, 2020, Lesley Benjamin signed an agreement, covering 5 years, to operate as a franchisee of Pearl Inc. for an initial franchise fee of $36,000. The amount of $11,000 was paid when the agreement was signed, and the balance is payable in five annual payments of $5,000 each, beginning January 1, 2021. The agreement provides that the down payment is nonrefundable and that no future services are required of the franchisor once the franchise commences operations on April...
SkysongLtd. issued a $953,000, 10-year bond dated January 1, 2020. The bond was sold to yield...
SkysongLtd. issued a $953,000, 10-year bond dated January 1, 2020. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company’s year-end was December 31, and Skysong followed IFRS. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond. Proceeds from sale of bond $ ...
On January 1, 2017, Bramble Corporation signed a 5-year noncancelable lease for a machine. The terms...
On January 1, 2017, Bramble Corporation signed a 5-year
noncancelable lease for a machine. The terms of the lease called
for Bramble to make annual payments of $8,026 at the beginning of
each year, starting January 1, 2017. The machine has an estimated
useful life of 6 years and a $4,900 unguaranteed residual value.
The machine reverts back to the lessor at the end of the lease
term. Bramble uses the straight-line method of depreciation for all
of its plant...
On September 1, 2017, Marin Inc. sold goods to Bramble Corp., a new customer. Before shipping...
On September 1, 2017, Marin Inc. sold goods to Bramble Corp., a new customer. Before shipping the goods, Marin’s credit and collections department conducted a procedural credit check and determined that Bramble is a high-credit-risk customer. As a result, Marin did not provide Bramble with open credit by recording the sale as an account receivable. Instead, Marin required Bramble to provide a non–interest-bearing promissory note for $35,800 face value, to be repaid in one year. Bramble has a credit rating...
On June 1, 2020, Concord Corporation approached Silverman Corporation about buying a parcel of undeveloped land....
On June 1, 2020, Concord Corporation approached Silverman Corporation about buying a parcel of undeveloped land. Silverman was asking $242,000 for the land and Concord saw that there was some flexibility in the asking price. Concord did not have enough money to make a cash offer to Silverman and proposed to give, in return for the land, a $305.000, five-year promissory note that bears interest at the rate of 4%. The interest is to be paid annually to Silverman Corporation...
Question 6 Bramble Inc. acquired 20% of the outstanding common shares of Gregson Inc. on December 31, 2019. The purchase price was $1,000,000 for 50,000 shares, and is equal to 20% of Gregson's carrying amount. Gregson declared and paid a $0.85 per share cash dividend on June 15 and again on December 15, 2020. Gregson reported net income of $545,000 for 2020. The fair value of Gregson's shares was $25 per share at December 31, 2020. Bramble is a public...
On January 1, 2020, Bramble Corporation sold a building that cost $274.380 and that had accumulated depreciation of $105,010 on the date of sale. Bramble received as consideration a $264,380 non-interest-bearing note due on January 1, 2023. There was no established exchange price for the building, and the note had na ready market. The prevailing rate of interest for a note of this type on January 1, 2020 was 12%. At what amount should the gain from the sale of...
On January 1, 2017, Bramble Corporation signed a 5-year noncancelable lease for a machine. The terms of the lease called for Bramble to make annual payments of $8,176 at the beginning of each year, starting January 1, 2017. The machine has an estimated useful life of 6 years and a $5,000 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Bramble uses the straight-line method of depreciation for all of its plant...
On January 1, 2020, Lesley Benjamin signed an agreement, covering 5 years, to operate as a franchisee of Pearl Inc. for an initial franchise fee of $36,000. The amount of $11,000 was paid when the agreement was signed, and the balance is payable in five annual payments of $5,000 each, beginning January 1, 2021. The agreement provides that the down payment is nonrefundable and that no future services are required of the franchisor once the franchise commences operations on April...
On January 1, 2017, Bramble Corporation signed a 5-year
noncancelable lease for a machine. The terms of the lease called
for Bramble to make annual payments of $8,026 at the beginning of
each year, starting January 1, 2017. The machine has an estimated
useful life of 6 years and a $4,900 unguaranteed residual value.
The machine reverts back to the lessor at the end of the lease
term. Bramble uses the straight-line method of depreciation for all
of its plant...
On June 1, 2020, Concord Corporation approached Silverman Corporation about buying a parcel of undeveloped land. Silverman was asking $242,000 for the land and Concord saw that there was some flexibility in the asking price. Concord did not have enough money to make a cash offer to Silverman and proposed to give, in return for the land, a $305.000, five-year promissory note that bears interest at the rate of 4%. The interest is to be paid annually to Silverman Corporation...
Most questions answered within 3 hours.
-
The rise of online shopping and Amazon, in particular, has
created major dilemmas for large food/CPG...
asked 11 minutes ago -
Assuming that the wave speed varies little when sound waves are
traveling through a material that...
asked 12 minutes ago -
Is oxygen difluoride polar or nonpolar?
nonpolar
polar
ionic
none of the above
asked 22 minutes ago -
Starting from rest, a car accelerates at a constant rate of 2.6
m/s2 for a time...
asked 19 minutes ago -
A pharmaceutical company wants to answer the question whether
time for a drug in pill form...
asked 22 minutes ago -
) Assume that in the market for widgets, demand is highly
elastic compared to supply. If...
asked 32 minutes ago -
Why is a personal interview the most important step in the sales
selection process? What are...
asked 42 minutes ago -
In Python rOverlap (x1, y1, w1, h1, x2, y2, w2, h2) A rectangle
is axis-aligned if...
asked 42 minutes ago -
If we observe in a protein solution that DNA is causing a
mixture 260/280 ratio ~0.9,...
asked 53 minutes ago -
Explain the steps involved in making cDNA from mRNA, and how you
would create a cDNA...
asked 53 minutes ago -
A beta (β) particle is described by which of the following?
Select the correct answer below:...
asked 56 minutes ago -
A new machine costs $150,000, lasts 10 years, has an annual
O&M cost of $50,000, and...
asked 59 minutes ago