On January 1, 2016, Crouser Company sold land to Chad Company, accepting a 2-year, $150,000, non-interest-bearing...

Question

Question

On January 1, 2016, Crouser Company sold land to Chad Company, accepting a 2-year, $150,000, non-interest-bearing...

On January 1, 2016, Crouser Company sold land to Chad Company, accepting a 2-year, $150,000, non-interest-bearing note due January 1, 2018. The fair value of the land was $123,966.90 on the date of sale. Crouser purchased the land for $105,000 on January 1, 2010.

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Jan-1-16	Notes receivable	150000
	Gain on sale of land		18966.9	=123966.9-105000
	Discount on notes receivable		26033.1
	Land		105000

Dec-31-16	Discount on notes receivable	13016.55		=26033.1/2
	Interest income		13016.55

Dec-31-17	Discount on notes receivable	13016.55
	Interest income		13016.55

Jan-1-18	Cash	150000
	Notes receivable		150000

Add a comment

Answer 2

Answer #2

Answer to part a Debit 150,000 Credit Date Jan 1, 2016 General Journa Notes Receivable (Dr) Land Gain on Sale of Land Unearne

Add a comment

Answer 3

Similar Homework Help Questions

On January 1, 2016, Crouser Company sold land to Chad Company, accepting a 2-year, $150,000, non-interest-bearing...

On January 1, 2016, Crouser Company sold land to Chad Company, accepting a 2-year, $150,000, non-interest-bearing note due January 1, 2018. The fair value of the land was $126,252.00 on the date of sale. Crouser purchased the land for $105,000 on January 1, 2010. Required: Prepare all the journal entries on Crouser’s books for January 1, 2016, through January 1, 2018, in regard to the Chad note.
On January 1, 2019, Crouser Company sold land to Chad Company, accepting a 2-year, $150,000, non-interest-bearing...

On January 1, 2019, Crouser Company sold land to Chad Company, accepting a 2-year, $150,000, non-interest-bearing note due January 1, 2021. The fair value of the land was $126,252.00 on the date of sale. The company purchased the land for $105,000 on January 1, 2013. Required: Prepare all the journal entries on Crouser’s books for January 1, 2019, through January 1, 2021, in regard to the Chad note.
On January 1, 2017 Hoff sold land to Run Company, accepting a 3-year $200,000 non-interest-bearing note...

On January 1, 2017 Hoff sold land to Run Company, accepting a 3-year $200,000 non-interest-bearing note due January 1, 2018. The fair value of the land is $146,238. The land was originally purchased for $136,500 on January 1, 2010. An appropriate rate of interest for a note of this caliber is 11%. Required: Prepare all the journal entries in Hoff's books for the January 1,2017 through January 1, 2018, in regards to the Run note.

Notes Receivable Instructions Chart of Accounts General Journal Present Value Tables Instructions On January 1, 2016,...

Notes Receivable Instructions Chart of Accounts General Journal Present Value Tables Instructions On January 1, 2016, Crouser Company sold land to Chad Company, accepting a 2-year, $150,000, non-interest-bearing note due January 1, 2018. The fair value of the land was $123,966.90 on the date of sale. Crouser purchased the land for $110,000 on January 1, 2010. Required: Prepare all the journal entries on Crouser’s books for January 1, 2016, through January 1, 2018, in regard to the Chad note. Chart...
On January 1, 2016, Worthylake Company sold used machinery to Brown Company, accepting a $30,000, non-interest-bearing...

On January 1, 2016, Worthylake Company sold used machinery to Brown Company, accepting a $30,000, non-interest-bearing note maturing on January 1, 2018. Worthylake carried the machinery on its books at a cost of $21,000 and a current book value of $14,000. Neither the fair value of the machinery nor the note was determinable at the time of sale; however, Brown’s incremental borrowing rate was 12%. Table 1 - Future Value of 1: fn,i=(1 + i)n Table 2 - Future Value...
On January 1, 2019, Worthylake Company sold used machinery to Brown Company, accepting a $25,000, non-interest-bearing...

On January 1, 2019, Worthylake Company sold used machinery to Brown Company, accepting a $25,000, non-interest-bearing note maturing on January 1, 2021. Worthylake carried the machinery on its books at a cost of $21,000 and a current book value of $16,000. Neither the fair value of the machinery nor the note was determinable at the time of sale; however, Brown’s incremental borrowing rate was 10%. Required: Prepare the journal entries on Worthylake’s books to record: 1. sale of the machinery...

Exhibit 13-03 On January 1, 2017, Train, Inc., accepted an $80.000 non-interest bearing 3 year note...

Exhibit 13-03 On January 1, 2017, Train, Inc., accepted an $80.000 non-interest bearing 3 year note in exchange for equipment it sold to Steam Company. Train originally purchased the equipment for $125,000, and it had a book value of $75,000 on the date of the sale. The note was non-interest-bearing. An assumed 11% interest rate is implicit in the agreement. Actual information for 11%, three periods, follows: Present value of 1 Present value of annuity of 1 0.73119 2.44371 Refer...
Question 1: Last year the company exchanged a piece of land for a non-interest-bearing note. The...

Question 1: Last year the company exchanged a piece of land for a non-interest-bearing note. The note is to be paid at the rate of $13,700 per year for 9 years, beginning one year from the date of disposal of the land. An appropriate rate of interest for the note was 12%. At the time the land was originally purchased, it cost $83,700 What is the fair value of the note ? Question 2:James Kirk is a financial executive with...
On June 1, 2020 Night sold land to Blue Company in exchange for a $700,000 non-interest...

On June 1, 2020 Night sold land to Blue Company in exchange for a $700,000 non-interest bearing note due on June 1, 2030. The prevailing rate of interest for a note of this type was not available. The cost of land to Night was $250,000. Night would have accepted $390,876 in cash for the land. Answer the following questions with whole numbers. 1) Calculate the gain in sale that Night will record from the sale of the land. 2) Indicate...

Problem C. On January 1, 2019, WESTERN sold equipment to JONES Company, accepting a $70,000 zero-interest...

Problem C. On January 1, 2019, WESTERN sold equipment to JONES Company, accepting a $70,000 zero-interest bearing note to be paid in full at the end of the third year, December 31,2021. The implicit interest rate is 10%. The present value factor for a single amount (n=3,I=10%)=0.75132 a. At what amount will Western record the sale? b. Complete the amortization table below. c. What journal entries should WESTERN record for the interest revenue recognition on December 2019, 2020, 2021. d....

On January 1, 2016, Crouser Company sold land to Chad Company, accepting a 2-year, $150,000, non-interest-bearing...

Homework Answers