Question

In: Accounting

on november 1,2021, buffalo farm equipment sold a harvesting machine to stead industries. Instead of a...

on november 1,2021, buffalo farm equipment sold a harvesting machine to stead industries. Instead of a cash payment, stead industries gave buffalo farm equipment a 89000 two-year,6.0% note. the note required interest to be paid quarterly starting february 1,2022. Buffalo farm equipment's financial statements are prepared on a calendar-year basis.


Prepare journal entries for buffalo farm equipment for the full term of the note . Include the sale of the equipment on Nov1,2021, receipt of interest, adjusting entries required on December 31,2021 and 2022, and the collection of the note on november 1,2023. Ignore cost of goods sold.

Solutions

Expert Solution

Answer: Journal entries for Buffalo farm equipment for the sale and receipt of note against Sales:

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

On November 1, 2021, Bonita Farm Equipment sold a harvesting machine to Stead Industries. Instead of...
On November 1, 2021, Bonita Farm Equipment sold a harvesting machine to Stead Industries. Instead of a cash payment, Stead Industries gave Bonita Farm Equipment a $99,000, two-year, 6.0% note. The note required interest to be paid quarterly starting February 1, 2022. Bonita Farm Equipment’s financial statements are prepared on a calendar-year basis. The following instructions refer only to this note receivable. Prepare journal entries for Bonita Farm Equipment for the full term of the note. Include the sale of...
On November 1, 2021, Headlands Farm Equipment sold a harvesting machine to Stead Industries. Instead of...
On November 1, 2021, Headlands Farm Equipment sold a harvesting machine to Stead Industries. Instead of a cash payment, Stead Industries gave Headlands Farm Equipment a $106,000, two-year, 6.0% note. The note required interest to be paid quarterly starting February 1, 2022. Headlands Farm Equipment’s financial statements are prepared on a calendar-year basis. The following instructions refer only to this note receivable. Prepare journal entries for Headlands Farm Equipment for the full term of the note. Include the sale of...
On October 1, 2017, Flint Corporation sold a harvesting machine to Pearl Industries. Instead of a...
On October 1, 2017, Flint Corporation sold a harvesting machine to Pearl Industries. Instead of a cash payment, Pearl Industries gave Flint a $139,000, two-year, 12% note; 12% is a realistic rate for a note of this type. The note required interest to be paid annually on October 1, beginning October 1, 2018. Flint’s financial statements are prepared on a calendar-year basis. Required: a) Assuming that no reversing entries are used and that Pearl Industries fulfills all the terms of...
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...
Buffalo Ranch & Farm is a distributor of ranch and farm equipment. Its products include small...
Buffalo Ranch & Farm is a distributor of ranch and farm equipment. Its products include small tools, power equipment for trench-digging and fencing, grain dryers, and barn winches. Most products are sold direct via its company Internet site. However, given some of its specialty products, select farm implement stores carry Buffalo’s products. Pricing and cost information on three of Buffalo’s most popular products are as follows. Item Stand-Alone Selling Price (Cost) Mini-trencher $2,900 ($1,640) Power fence hole auger 984 ($656)...
28. Tarnish Industries produces miniature models of farm equipment. These collectibles are in great demand. It...
28. Tarnish Industries produces miniature models of farm equipment. These collectibles are in great demand. It takes two operations, molding and finishing, to complete the miniatures. Next year's expected activities are shown in the following table: Molding Finishing Direct labor hours 87,000 DLH 172,500 DLH Machine hours 110,000 MH 93,500 MH Tarnish Industries uses departmental overhead rates and is planning on a $5.30 per direct labor hour overhead rate for the finishing department. Compute the estimated manufacturing overhead cost for...
Downstream Intercompany Equipment Transactions On July 1, 2015, Pearl Industries sold administrative equipment with a book...
Downstream Intercompany Equipment Transactions On July 1, 2015, Pearl Industries sold administrative equipment with a book value of $360,000 to its subsidiary, Shiek Shoes, for $420,000. At the date of sale, the equipment had a remaining life of five years. It is being straight-line depreciated on Shiek’s books. It is now December 31, 2017, the end of the accounting year, and you are preparing the working paper to consolidate the trial balances of Pearl and Shiek. Shiek still owns the...
Downstream Intercompany Equipment Transactions On July 1, 2015, Pearl Industries sold administrative equipment with a book...
Downstream Intercompany Equipment Transactions On July 1, 2015, Pearl Industries sold administrative equipment with a book value of $1,200,000 to its subsidiary, Shiek Shoes, for $1,400,000. At the date of sale, the equipment had a remaining life of five years. It is being straight-line depreciated on Shiek’s books. It is now December 31, 2017, the end of the accounting year, and you are preparing the working paper to consolidate the trial balances of Pearl and Shiek. Shiek still owns the...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT