Marigold Corporation bought a computer on December 31, 2020, paying $35,000 down with a further $89,000...
Marigold Corporation bought a computer on December 31, 2020, paying $35,000 down with a further $89,000 payment due on December 31, 2023. An interest rate of 8% is implicit in the purchase price. Marigold uses the effective interest method and has a December 31 year end. Marigold prepares financial statements in accordance with ASPE. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (a) New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct. Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, prepare the journal entry at the purchase date. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|
Dec. 31, 2020 |
|||
Homework Answers
Answer:
Journal entry at purchase date is
As per the sources from ASPE Implicit cost should not be accounted in financial statement. Therefore the Purchase date (December 31, 2020) entry would be.
| Date | Particulars | Debit($) | Credit($) |
| 31/12/2020 | Computer | 124000 | |
| Cash | 35000 | ||
| Notes payable | 89000 | ||
| (Being Computer Purchased through cash & Long term Notes payable on December 31,2023) |
Since as per ASPE Implicit interest should not be accounted in financial records.
Add Answer to:
Marigold Corporation bought a computer on December 31, 2020,
paying $35,000 down with a further $89,000...
Question 6 Martinez Corporation bought a computer on December 31, 2020, paying $29,000 down with a...
Question 6 Martinez Corporation bought a computer on December 31, 2020, paying $29,000 down with a further $71,000 payment due on December 31, 2023. An interest rate of 9% is implicit in the purchase price. Martinez uses the effective interest method and has a December 31 year end. Martinez prepares financial statements in accordance with ASPE. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF...
Monty Corporation purchased a computer on December 31, 2019, for $149,100, paying $42,600 down and agreeing...
Monty Corporation purchased a computer on December 31, 2019, for $149,100, paying $42,600 down and agreeing to pay the balance in five equal installments of $21,300 payable each December 31 beginning in 2020. An assumed interest rate of 8% is implicit in the purchase price. Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when amount...
Exercise 10-15 Martinez Corporation purchased a computer on December 31, 2019, for $130,200, paying $37,200 down...
Exercise 10-15 Martinez Corporation purchased a computer on December 31, 2019, for $130,200, paying $37,200 down and agreeing to pay the balance in five equal installments of $18,600 payable each December 31 beginning in 2020. An assumed interest rate of 8% is implicit in the purchase price. Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented...
Exercise 10-15 Martinez Corporation purchased a computer on December 31, 2019, for $130,200, paying $37,200 down and ag...
Exercise 10-15 Martinez Corporation purchased a computer on December 31, 2019, for $130,200, paying $37,200 down and agreeing to pay the balance in five equal installments of $18,600 payable each December 31 beginning in 2020. An assumed interest rate of 8% is implicit in the purchase price. Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented...
Larkspur Corporation purchased a computer on December 31, 2019, for $144,900, paying $41,400 down and agreeing...
Larkspur Corporation purchased a computer on December 31, 2019, for $144,900, paying $41,400 down and agreeing to pay the balance in five equal installments of $20,700 payable each December 31 beginning in 2020. An assumed interest rate of 10% is implicit in the purchase price. (a) Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when...
Cheyenne Corporation purchased a computer on December 31, 2019, for $140,700, paying $40,200 down and agreeing...
Cheyenne Corporation purchased a computer on December 31, 2019, for $140,700, paying $40,200 down and agreeing to pay the balance in five equal installments of $20,100 payable each December 31 beginning in 2020. An assumed interest rate of 9% is implicit in the purchase price. (a) Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when...
On December 31, 2020, American Bank enters into a debt restructuring agreement with Marigold Company, which...
On December 31, 2020, American Bank enters into a debt restructuring agreement with Marigold Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $2,320,000 note receivable by the following modifications: 1. Reducing the principal obligation from $2,320,000 to $1,856,000. 2. Extending the maturity date from December 31, 2020, to January 1, 2024. 3. Reducing the interest rate from 12% to 10%. Marigold pays interest at the end of each year. On January...
Exercise 10-15 Bonita Corporation purchased a computer on December 31, 2019, for $157,500, paying $45,000 down...
Exercise 10-15 Bonita Corporation purchased a computer on December 31, 2019, for $157,500, paying $45,000 down and agreeing to pay the balance in five equal installments of $22,500 payable each December 31 beginning in 2020. An assumed interest rate of 9% is implicit in the purchase price. Your answer is partially correct. Try again. Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g....
Swifty Corporation purchased a computer on December 31 2016 for $119,700 ing $34,200 down and agreeing...
Swifty Corporation purchased a computer on December 31 2016 for $119,700 ing $34,200 down and agreeing to pay the balance in five equal installments of $17,100 payable each December 31 beginning in 2017. An assumed interest rate of 8% s mplicit in the purchase price he Purchase priced comp Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. Credit account titles are...
ssignment #5: Chapter 6 Gradebook 13.35/ Question 7 View Policies Show Attempt History Current Attempt in Progress...
ssignment #5: Chapter 6 Gradebook 13.35/ Question 7 View Policies Show Attempt History Current Attempt in Progress On March 1, 2020, Carla Vista Company sold goods to Tamarisk Inc. for $654.000 in exchange for a five-year, zero-interest- bearing note in the face amount of $1.053.274. The goods have an inventory cost on Carla Vista's books of $406.000. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY...
Question 6 Martinez Corporation bought a computer on December 31, 2020, paying $29,000 down with a further $71,000 payment due on December 31, 2023. An interest rate of 9% is implicit in the purchase price. Martinez uses the effective interest method and has a December 31 year end. Martinez prepares financial statements in accordance with ASPE. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF...
Monty Corporation purchased a computer on December 31, 2019, for $149,100, paying $42,600 down and agreeing to pay the balance in five equal installments of $21,300 payable each December 31 beginning in 2020. An assumed interest rate of 8% is implicit in the purchase price. Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when amount...
Exercise 10-15 Martinez Corporation purchased a computer on December 31, 2019, for $130,200, paying $37,200 down and agreeing to pay the balance in five equal installments of $18,600 payable each December 31 beginning in 2020. An assumed interest rate of 8% is implicit in the purchase price. Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented...
Exercise 10-15 Martinez Corporation purchased a computer on December 31, 2019, for $130,200, paying $37,200 down and agreeing to pay the balance in five equal installments of $18,600 payable each December 31 beginning in 2020. An assumed interest rate of 8% is implicit in the purchase price. Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented...
Cheyenne Corporation purchased a computer on December 31, 2019, for $140,700, paying $40,200 down and agreeing to pay the balance in five equal installments of $20,100 payable each December 31 beginning in 2020. An assumed interest rate of 9% is implicit in the purchase price. (a) Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when...
On December 31, 2020, American Bank enters into a debt restructuring agreement with Marigold Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $2,320,000 note receivable by the following modifications: 1. Reducing the principal obligation from $2,320,000 to $1,856,000. 2. Extending the maturity date from December 31, 2020, to January 1, 2024. 3. Reducing the interest rate from 12% to 10%. Marigold pays interest at the end of each year. On January...
Exercise 10-15 Bonita Corporation purchased a computer on December 31, 2019, for $157,500, paying $45,000 down and agreeing to pay the balance in five equal installments of $22,500 payable each December 31 beginning in 2020. An assumed interest rate of 9% is implicit in the purchase price. Your answer is partially correct. Try again. Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g....
Swifty Corporation purchased a computer on December 31 2016 for $119,700 ing $34,200 down and agreeing to pay the balance in five equal installments of $17,100 payable each December 31 beginning in 2017. An assumed interest rate of 8% s mplicit in the purchase price he Purchase priced comp Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. Credit account titles are...
ssignment #5: Chapter 6 Gradebook 13.35/ Question 7 View Policies Show Attempt History Current Attempt in Progress On March 1, 2020, Carla Vista Company sold goods to Tamarisk Inc. for $654.000 in exchange for a five-year, zero-interest- bearing note in the face amount of $1.053.274. The goods have an inventory cost on Carla Vista's books of $406.000. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY...
Most questions answered within 3 hours.
-
Which of the following describes a private network?
1. A wide area network (WAN) linking sites...
asked 8 minutes ago -
The purpose of this
lab: Wireshark Intro Lab
is to get students
familiar with the use of...
asked 17 minutes ago -
Question 3
A 50 percent deduction is allowed for amounts paid or incurred for
dues and...
asked 15 minutes ago -
Assuming that the wave speed varies little when sound waves are
traveling through a material that...
asked 30 minutes ago -
The rise of online shopping and Amazon, in particular, has
created major dilemmas for large food/CPG...
asked 29 minutes ago -
Is oxygen difluoride polar or nonpolar?
nonpolar
polar
ionic
none of the above
asked 41 minutes ago -
Starting from rest, a car accelerates at a constant rate of 2.6
m/s2 for a time...
asked 37 minutes ago -
A pharmaceutical company wants to answer the question whether
time for a drug in pill form...
asked 40 minutes ago -
) Assume that in the market for widgets, demand is highly
elastic compared to supply. If...
asked 51 minutes ago -
Why is a personal interview the most important step in the sales
selection process? What are...
asked 1 hour ago -
In Python rOverlap (x1, y1, w1, h1, x2, y2, w2, h2) A rectangle
is axis-aligned if...
asked 1 hour ago -
If we observe in a protein solution that DNA is causing a
mixture 260/280 ratio ~0.9,...
asked 1 hour ago