On January 1, 2014, Fishbone Corporation sold equipment to Lost Company that cost $250,000 and that...

On January 1, 2014, Fishbone Corporation sold equipment to Lost Company that cost $250,000 and that had accumulated depreciation of $100,000 on the date of sale. Fishbone received as consideration a $240,000 non-interest-bearing note due on December 31, 2016. The prevailing rate of interest for a note of this type on January 1, 2014, was 5%

A. Record the 1/1/14 transaction for fishbone corporation and all necessary entries from 2014-2016.

B. Record the 1/1/14 transaction for Lost Company and all necessary entries from 2014-2016.

Please do a step by step on how and why you got your answer, thank you!!!

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

On January 1, 2014, Fishbone Corporation sold equipment to Lost Company that cost $250,000 and that...

On January 1, 2014, Fishbone Corporation sold equipment to Lost Company that cost $250,000 and that had accumulated depreciation of $100,000 on the date of sale. Fishbone received as consideration a non-interest-bearing note requiring payments of $80,000 annually for 3 years. The first note payment is to be made on January 1, 2014. The prevailing rate of interest for a note of this type on January 1, 2014, was 5%. Record the 1/1/14 transaction for Fishbone Corporation and all necessary...

1. On January 1, 2014, Fishbone Corporation (an equipment manufacturer) sold equipment to Lost Company that...

1. On January 1, 2014, Fishbone Corporation (an equipment manufacturer) sold equipment to Lost Company that cost $150,000. Fishbone received as consideration a down payment of $100,000 and a $240,000 note, (which includes accrued interest @ 5%), due on December 31, 2016. The prevailing rate of interest for a note of this type on January 1, 2014, was 5%. Record the 1/1/14 transaction for Fishbone Corporation and all necessary entries from 2014-2016. Record the 1/1/14 transaction for Lost Company and...

8. On January 1, 2014, Fishbone Corporation (an equipment manufacturer) sold equipment to Lost Company that...

8. On January 1, 2014, Fishbone Corporation (an equipment manufacturer) sold equipment to Lost Company that cost $150,000. Fishbone received as consideration a 5% interest-bearing note requiring payments of $80,000 annually for 3 years. The first note payment is to be made on December 31, 2014. The prevailing rate of interest for a note of this type on January 1, 2014, was 5%.

On January 1, 2014, Stark Company purchased equipment for a total cost of $155,000. The equipment...

On January 1, 2014, Stark Company purchased equipment for a total cost of $155,000. The equipment had an estimated useful life of 7 years and an estimated residual value of $43,000. Straight-line depreciation was used. On September 1, 2020, Stark Company disposes of the equipment. Required: Prepare the journal entry to record the disposition on September 1, 2020 assuming the equipment was sold for $39,000 cash. Prepare the journal entry to record the disposition on September 1, 2020 assuming the...

Equipment was acquired on January 1, 2014, at a cost of $170,000. The equipment was originally...

Equipment was acquired on January 1, 2014, at a cost of $170,000. The equipment was originally estimated to have a salvage value of $10,000 and an estimated life of 10 years. Depreciation has been recorded through December 31, 2016, using the straight-line method. On January 1, 2017, the estimated salvage value was revised to $16,000 and the useful life was revised to a total of 8 years. Determine the depreciation expense for 2017.

On January 1, 2018, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $250,000 in...

On January 1, 2018, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $250,000 in cash. The equipment had originally cost $225,000 but had a book value of only $137,500 when transferred. On that date, the equipment had a five-year remaining life. Depreciation expense is computed using the straight-line method. Ackerman reported $350,000 in net income in 2018 (not including any investment income) while Brannigan reported $114,500. Ackerman attributed any excess acquisition-date fair value to Brannigan's unpatented technology, which...

On January 1, 2014, Bullitt Corporation sold a machine to Sting Corporation and simultaneously leased it...

On January 1, 2014, Bullitt Corporation sold a machine to Sting Corporation and simultaneously leased it back for ten years. The following information is available regarding the lease: Estimated remaining useful life at December 31, 2013 10 years Sales price $ ,90,000 Carrying value at December 31, 2103 $ 52,500 Annual rental under leaseback $14,600 Interest rate implicit in the lease 10% Present value of the lease rentals $ 89,711 (14,600 for 10 years at 10%) How much profit should...

Gerbil Leasing Company agrees to lease equipment to Playa Corporation on January 1, 2014. The following...

Gerbil Leasing Company agrees to lease equipment to Playa Corporation on January 1, 2014. The following information relates to the lease agreement. - The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. - The cost of the machinery is $525,000, and the fair value of the asset on January 1, 2014, is $700,000. - At the end of the lease term, the asset reverts to the...

Pen Corporation owned equipment with an original cost of $90,000. On January 1, 2019, Pen sold...

Pen Corporation owned equipment with an original cost of $90,000. On January 1, 2019, Pen sold the equipment to Sen Company (a 60%-owned subsidiary) for a price of $82,400. At the time of the intercompany sale, the equipment had been depreciated for $18,400. The equipment has a remaining useful life of 8 years and is straight-line depreciated. On January 1, 2021, Sen sold the equipment to an outside company for $63,200. (i) Prepare the working paper eliminating entry regarding the...

On january 1, 2014, ABC Co. sold a mining equipment to surigao mining for 1,500,000 which...

On january 1, 2014, ABC Co. sold a mining equipment to surigao mining for 1,500,000 which ABC accepted a 10% , 3-year noe payable in three equal annual payments every December 31 starting in 2014.The interest is to be paid every end of the year. The cost of the equipment to ABC Co. was 500,000. prepared journal entry for all the transactions affecting the said sales of equipment on january 1, 2014 up to the time the note is fully...

Subjects