Question
In: Accounting
On 1/1/2020, Star sold a machine with the following terms to Eagle Inc.: cash received $20,000,...
On 1/1/2020, Star sold a machine with the following terms to Eagle Inc.: cash received $20,000, $40,000 5% (state rate) note receivable due in 5 years with interest payable 1/1 and . Eagle’s cost of capital is 6%. The original cost of the machine was $25,000 with an accumulated depreciation of $11,000.
The present value of the note is ________________________
The entry Star (seller) would record is:
The entry Eagle (buyer) would record is:
Prepare the first 4 periods of the amortization schedule for the note that Eagle (the Buyer) would prepare. You only need to show the first 4 periods. Label the amortization schedule with account names and debits/credits:
Solutions
ekkarill92 answered 2 years agoRelated Solutions
On 1/1/2020, Star sold a machine with the following terms to Eagle Inc.: cash received $20,000,...
On 1/1/2020, Star sold a machine with the following terms to
Eagle Inc.: cash received $20,000, $40,000 5% (state rate) note
receivable due in 5 years with interest payable 1/1 and . Eagle’s
cost of capital is 6%. The original cost of the machine was $25,000
with an accumulated depreciation of $11,000.
The present value of
the note is ________________________
The entry Star
(seller) would record is:
The entry Eagle
(buyer) would record is:
Prepare the first 4
periods of...
Partner A received the following in a nonliquidating distribution: Basis FMV Cash $20,000 $20,000 Inventory Item...
Partner A received the following in a nonliquidating
distribution: Basis FMV Cash $20,000 $20,000 Inventory Item 1
$15,000 $18,000 Inventory Item 2 $12,000 $4,000 Capital Asset 1
$15,000 $8,000 Capital Asset 2 $10,000 $20,000 $72,000 $70,000
Assume A’s basis in the partnership before the distribution was
$35,000. What would the bases of the assets be to A?
On September 1, 2020, Betty DeRose, Inc. received $45,000 cash from a customer as payment for...
On September 1, 2020, Betty DeRose, Inc. received $45,000 cash
from a customer as payment for services to be performed over the
next 24 months. Betty DeRose, Inc. received $45,000 cash from
another customer on May 31, 2021 as payment for services to be
performed over the next 18 months. Calculate the total amount of
unearned revenue that would appear in Betty DeRose, Inc's December
31, 2021 balance sheet.
On October 1, 2020, Pearl Equipment Company sold a pecan-harvesting machine to Valco Brothers Farm, Inc....
On October 1, 2020, Pearl Equipment Company sold a
pecan-harvesting machine to Valco Brothers Farm, Inc. In lieu of a
cash payment Valco Brothers Farm gave Arden a 2-year, $171,200, 10%
note (a realistic rate of interest for a note of this type). The
note required interest to be paid annually on October 1. Pearl’s
financial statements are prepared on a calendar-year basis.
Assuming Valco Brothers Farm fulfills all the terms of the note,
prepare the necessary journal entries for...
On October 1, 2020, Monty Equipment Company sold a pecan-harvesting machine to Valco Brothers Farm, Inc....
On October 1, 2020, Monty Equipment Company sold a
pecan-harvesting machine to Valco Brothers Farm, Inc. In lieu of a
cash payment Valco Brothers Farm gave Arden a 2-year, $193,200, 10%
note (a realistic rate of interest for a note of this type). The
note required interest to be paid annually on October 1. Monty’s
financial statements are prepared on a calendar-year basis.
Assuming Valco Brothers Farm fulfills all the terms of the note,
prepare the necessary journal entries for...
On October 1, 2020, Sage Equipment Company sold a pecan-harvesting machine to Valco Brothers Farm, Inc....
On October 1, 2020, Sage Equipment Company sold a
pecan-harvesting machine to Valco Brothers Farm, Inc. In lieu of a
cash payment Valco Brothers Farm gave Arden a 2-year, $135,200, 8%
note (a realistic rate of interest for a note of this type). The
note required interest to be paid annually on October 1. Sage’s
financial statements are prepared on a calendar-year basis.
Assuming Valco Brothers Farm fulfills all the terms of the note,
prepare the necessary journal entries for...
1)During 2020, Kevin received the following items: $5,000 unemployment compensation $10,000 inheritance $20,000 life insurance proceeds...
1)During 2020, Kevin received the following items:
$5,000 unemployment compensation
$10,000 inheritance
$20,000 life insurance proceeds on account of mother’s death
How much is Kevin required to include in gross income?
2)
Len Landlord owns an apartment building. During the year he
received:
Rent payments………………….$10,000
Security deposit………………... 2,500
Advance rent payment…………. 5,000
How much must Len include in income?
2. On March 1, 2016, Eagle Group Inc. sold $1,000,000, 9% bonds dated January 1, 2016...
2. On March 1, 2016, Eagle Group Inc. sold $1,000,000, 9% bonds
dated January 1, 2016 for $1,105,256 plus $15,000 accrued interest.
Interest is payable annually on January 1, and the bonds mature on
January 1, 2026. On July 1, 2017 Eagle Group retired $300,000 of
the bonds at 105 plus accrued interest. Eagle Group uses
straight-line amortization.
Required:
Prepare the journal entry to
record the redemption of $300,000 bonds on July 1, 2017.
3.
One way to...
2. On March 1, 2016, Eagle Group Inc. sold $1,000,000, 9% bonds dated January 1, 2016...
2. On March 1, 2016, Eagle Group
Inc. sold $1,000,000, 9% bonds dated January 1, 2016 for $1,105,256
plus $15,000 accrued interest. Interest is payable annually on
January 1, and the bonds mature on January 1, 2026. On July 1, 2017
Eagle Group retired $300,000 of the bonds at 105 plus accrued
interest. Eagle Group uses straight-line
amortization.
Required:
Prepare
the journal entry to record the redemption of $300,000 bonds on
July 1, 2017.
3.
One way to...
Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 20,000...
Cherokee Inc. is a merchandiser that provided the following
information: Amount Number of units sold 20,000 Selling price per
unit $ 30 Variable selling expense per unit $ 4 Variable
administrative expense per unit $ 2 Total fixed selling expense $
40,000 Total fixed administrative expense $ 30,000 Beginning
merchandise inventory $ 24,000 Ending merchandise inventory $
44,000 Merchandise purchases $ 180,000 Required: 1. Prepare a
traditional income statement. 2. Prepare a contribution format
income statement.
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