Boston Company purchased equipment by signing a noninterest-bearing note with a face value of $64,800. The...
Boston Company purchased equipment by signing a noninterest-bearing note with a face value of $64,800. The list price of the equipment is $50,000. Prepare the appropriate journal entry to record the purchase of the equipment.
Homework Answers
| Account Titles and Explanation | Debit | Credit |
| Equipment | $50,000 | |
| Discount on Note Payable ($64,800 - 50,000) | $14,800 | |
| Note Payable | $64,800 |
Add Answer to:
Boston Company purchased equipment by signing a
noninterest-bearing note with a face value of $64,800. The...
Saunders Company purchased equipment by signing a noninterest-bearing note of $21,000 with payment due in three...
Saunders Company purchased equipment by signing a noninterest-bearing note of $21,000 with payment due in three years. The equipment is custom-built, so its cash price is unavailable. Using a rate of 9%, which reflects the appropriate interest rate for a loan of this type of loan, the present value of the note is $16,216. Prepare the appropriate journal entry to record the purchase of the equipment.
Stevenson Inc. purchased equipment by signing a $50,000 noninterest-bearing note due in 8 years. Comparable borrowings...
Stevenson Inc. purchased equipment by signing a $50,000 noninterest-bearing note due in 8 years. Comparable borrowings have carried an 8% interest rate. What is the value of this debt at its inception? (Do not add dollar sign; do not add comme to your amount round the answer to the whole number) Present Value of $1 Present Value of Ordinary Annuity of $1 Period 3% 6% 896 396 4% 4% 0.8548D 6% 8% 4 0.88849 0.79209 0.73503 3.71710 3.62990 3.46511 3.31213...
At the beginning of 2018, VHF Industries acquired a equipment with a fair value of $9,112,050...
At the beginning of 2018, VHF Industries acquired a equipment with a fair value of $9,112,050 by issuing a four-year, noninterest bearing note in the face amount of $12 million. The note is payable in four annual installments of $3 million at the end of each year (Fy of $1. PV of $1. FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. What is the effective rate...
Exercise 7-19 (Algo) Noninterest-bearing note receivable (L07-7] On June 30, 2021, the Esquire Company sold merchandise...
Exercise 7-19 (Algo) Noninterest-bearing note receivable (L07-7] On June 30, 2021, the Esquire Company sold merchandise to a customer and accepted a noninterest-bearing note in exchange. The note requires payment of $45,000 on March 31, 2022. The fair value of the merchandise exchanged is $42,300. Esquire views the financing component of this contract as significant Required: 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold),...
Exercise 7-19 (Algo) Noninterest-bearing note receivable (LO7-7] points On June 30, 2021, the Esquire Company sold...
Exercise 7-19 (Algo) Noninterest-bearing note receivable (LO7-7] points On June 30, 2021, the Esquire Company sold merchandise to a customer and accepted a noninterest-bearing note in exchange. The note requires payment of $47,000 on March 31, 2022. The fair value of the merchandise exchanged is $44,180. Esquire views the financing component of this contract as significant Skipped Required: 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the...
please complete both required parts to the problem Exercise 7-19 (Algo) Noninterest-bearing note receivable (L07-7) On...
please complete both required parts to the problem
Exercise 7-19 (Algo) Noninterest-bearing note receivable (L07-7) On June 30, 2021, the Esquire Company sold merchandise to a customer and accepted a noninterest-bearing note in exchange. The note requires payment of $52,000 on March 31, 2022. The fair value of the merchandise exchanged is $50,050. Esquire views the financing component of this contract as significant Required: 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be...
First Choice Company buys equipment on October 1, 2020, providing as payment a noninterest-bearing note for...
First Choice Company buys equipment on October 1, 2020, providing as payment a noninterest-bearing note for $12,000 to be paid one year from today. The equipment could be purchased for $10,909 in cash today. Record the entries for First Choice Company on the following dates. a. Issuance of the note on October 1, 2020. b. Adjusting entry on December 31, 2020, First Choice Company's fiscal year-end. Amortize the discount on the note using the straight-line method. c. Payment of the...
At the beginning of 2018, VHF Industries acquired a equipment with a fair value of $8,710,520...
At the beginning of 2018, VHF Industries acquired a equipment with a fair value of $8,710,520 by issuing a six-year, noninterest-bearing note in the face amount of $12 million. The note is payable in six annual installments of $2 million at the end of each year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. What is the effective rate of...
At the beginning of 2018, VHF Industries acquired a equipment with a fair value of $6,774,420...
At the beginning of 2018, VHF Industries acquired a equipment with a fair value of $6,774,420 by issuing a four-year, noninterest-bearing note in the face amount of $8 million. The note is payable in four annual installments of $2 million at the end of each year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. What is the effective rate of...
On January 1, 2021, Byner Company purchased a used tractor. Byner paid $4,000 down and signed a noninterest-bearing note requiring $33,000 to be paid on December 31, 2023. The fair value of the tractor is not determinable. An interest rate of 12% properly
On January 1, 2021, Byner Company purchased a used tractor. Byner paid $4,000 down and signed a noninterest-bearing note requiring $33,000 to be paid on December 31, 2023. The fair value of the tractor is not determinable. An interest rate of 12% properly reflects the time value of money for this type of loan agreement. The company’s fiscal year-end is December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of...
Stevenson Inc. purchased equipment by signing a $50,000 noninterest-bearing note due in 8 years. Comparable borrowings have carried an 8% interest rate. What is the value of this debt at its inception? (Do not add dollar sign; do not add comme to your amount round the answer to the whole number) Present Value of $1 Present Value of Ordinary Annuity of $1 Period 3% 6% 896 396 4% 4% 0.8548D 6% 8% 4 0.88849 0.79209 0.73503 3.71710 3.62990 3.46511 3.31213...
At the beginning of 2018, VHF Industries acquired a equipment with a fair value of $9,112,050 by issuing a four-year, noninterest bearing note in the face amount of $12 million. The note is payable in four annual installments of $3 million at the end of each year (Fy of $1. PV of $1. FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. What is the effective rate...
Exercise 7-19 (Algo) Noninterest-bearing note receivable (L07-7] On June 30, 2021, the Esquire Company sold merchandise to a customer and accepted a noninterest-bearing note in exchange. The note requires payment of $45,000 on March 31, 2022. The fair value of the merchandise exchanged is $42,300. Esquire views the financing component of this contract as significant Required: 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold),...
Exercise 7-19 (Algo) Noninterest-bearing note receivable (LO7-7] points On June 30, 2021, the Esquire Company sold merchandise to a customer and accepted a noninterest-bearing note in exchange. The note requires payment of $47,000 on March 31, 2022. The fair value of the merchandise exchanged is $44,180. Esquire views the financing component of this contract as significant Skipped Required: 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the...
please complete both required parts to the problem
Exercise 7-19 (Algo) Noninterest-bearing note receivable (L07-7) On June 30, 2021, the Esquire Company sold merchandise to a customer and accepted a noninterest-bearing note in exchange. The note requires payment of $52,000 on March 31, 2022. The fair value of the merchandise exchanged is $50,050. Esquire views the financing component of this contract as significant Required: 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be...
First Choice Company buys equipment on October 1, 2020, providing as payment a noninterest-bearing note for $12,000 to be paid one year from today. The equipment could be purchased for $10,909 in cash today. Record the entries for First Choice Company on the following dates. a. Issuance of the note on October 1, 2020. b. Adjusting entry on December 31, 2020, First Choice Company's fiscal year-end. Amortize the discount on the note using the straight-line method. c. Payment of the...
Most questions answered within 3 hours.
-
which of the following may lead to speciation?
a. a group of individuals from a mainland...
asked 3 minutes ago -
Please I need today answer for This question and it is very
important and I need...
asked 21 minutes ago -
Five years from today, you plan to invest $3,700 for 7
additional years at 5.8 percent...
asked 21 minutes ago -
GDL just paid a dividend of $4.06 per share. You expect
dividends to grow 12% for...
asked 23 minutes ago -
which of the following is a basic compound?
vinegar
orange juice
seltzer
none of the above
asked 26 minutes ago -
5. Suppose you obtained 0.55 g of crude clove oil from 7.0 g of
fresh cloves....
asked 36 minutes ago -
Provide a paragraph of introduction that generally describes
cognitive development over the lifespan.
asked 41 minutes ago -
In a market, when the price increased the total expenditure on
the good also increased. Is...
asked 41 minutes ago -
If 5.70 g of potassium react with water, how many grams of
hydrogen gas, H2, are...
asked 55 minutes ago -
How many moles of CO2 and H2O will be
produced by combustion analysis of 0.010 mol...
asked 53 minutes ago -
Tennis champion Maria Sharapova is capable of serving a tennis
ball at 126 mph.
b) What...
asked 1 hour ago -
The electric potential V in the space between the plates of a
given vacuum tube is...
asked 1 hour ago