Homework Answers
| Date | Accounts | Debit | Credit |
| 01.06.20X1 | Cash | $450,000 | |
| To Sale of Equipment | $428,000 | ||
| To Maintenance Contract ( 450000-428000) | $22,000 | ||
| ( Sale of equipment with 3 Year warranty) | |||
| 30-11-20X1 | sale of Equipment | $428,000 | |
| P&L | $428,000 | ||
| ( Revenue Booked) | |||
| 30-11-20X1 | Maintenance Contract Amount charge | $22,000 | |
| Discount on Maintenance Contract | $67,900 | ||
| Provision for Maintenance for 3 year | $89,900 | ||
| ( Provision for 3 Year Maintenance contract created and Discount booked according market rate) | |||
| P&L A/c Dr. | $67,900 | ||
| To Discount on Maintenance contract | $67,900 | ||
| ( Discount booked in PL A/c) |
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On January 1, 2021, Splash City issues $450,000 of 7% bonds, due
in 10 years, with interest payable semiannually on June 30 and
December 31 each year.
Assuming the market interest rate on the issue date is 8%, the
bonds will issue at $419,423.
Required: 1. Complete the first three rows of an amortization table. (Round your intermediate and final answers to the nearest whole dollar.) Date Cash Paid Interest Expense Change in Carrying Value Carrying Value 1/1/21 6/30/21 12/31/21...
On 1/1/X1, Gerri Corp. borrowed $450,000 by agreeing to a 9%, 9-year installment note with the bank. The note's proceeds will eventually be used to purchase a building. The journal entry to record the note is already shown in the journal below The note will be paid back in nine equal annual installment payments of $ 75,059 on December 31 of each year beginning December 31, 20X1 Required: Using the above information, prepare the journal entries to record the first...
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