Question
In: Accounting
Given the following information, prepare the following journal entries. A firm purchases a piece of equipment...
Given the following information, prepare the following journal
entries.
A firm purchases a piece of equipment for its assembly line by
issuing a 3-year, 5% interest bearing note for $100,000 when the
market rate for such notes is 4%. The firm will make interest
payment at the end of each year and then pay the full principle
balance at the end of the 3-year term. The firm uses the fair value
of the note as the estimate of the fair value of the piece of
equipment. Show your calculations for the fair value of the
equipment at the date of purchase and for the periodic interest
expense.
a) Date of purchase
b) End of first year
c) End of second year
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Based on information given in the attached Excel document, 1. Prepare journal entries and adjusting entries...
Based on information given in the attached Excel
document, 1. Prepare journal entries and adjusting entries for
September 2019 for your company. 2. Set up T-accounts and post your
journal entries and adjusting entries to T-accounts. 3. Prepare
your company’s pre-closing trial balance, as of September 30, 2019.
4. Prepare an income statement, in a good format, for the month of
September 2019 for your company. 5. Prepare a statement of retained
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Problem (1)
Prepare journal entries to record each of the
following purchases transactions of a merchandising company. Show
supporting calculations and assume a perpetual and periodic
inventory system.
Mar. 5 Purchased 500 units of product at a cost of $5 per unit.
Terms of the sale are 2/10, n/60 the invoice is dated March 5.
Mar.7 Returned 50 defective units from the March 5 purchase and
received full credit.
Mar 15 paid the amount due from the March 5 purchase...
Prepare General Journal Entries for the following transactions. Then post the journal entries to the General...
Prepare General Journal Entries for the following
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1Dunlop invested $30,000 cash and buildings worth $150,000 in the
company March 2The company rented equipment by paying $2,000 cash
for the first month’s (March) rent. March 5The company purchased
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Coverage begins on March...
Question 2: prepare the journal entries for the following cases: 1- The cost of equipment SR75,000...
Question 2: prepare the journal entries
for the following cases:
1- The cost of equipment SR75,000 – accumulated depreciation
SR75,000
The company disposes the equipment (no salvage value).
2- The cost of equipment SR80,000 – accumulated depreciation
SR60,000
The company disposes the equipment (no salvage value).
3- The cost of equipment SR85,000 – accumulated depreciation
SR70,000
The company sold the equipment for 12,000.
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On January 1, a business purchases a piece of equipment and the following information applies: Acquisition...
On January 1, a business purchases a piece of equipment and the
following information applies:
Acquisition
cost 20,000
Estimated useful
life 10
years
Estimated total unit of
production 12,000
Estimated salvage
value 2,000
Actual units produced in year
1 1,100
Actual units produced in year
2 1,500
Determine depreciation expense for YEAR 2 under units of
production.
Determine depreciation expense for YEAR 2 under double
declining balance.
Without performing any calculations, what will be the book
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Prepare in journal entry form all adjusting and correcting journal entries based on the following information. All...
Prepare in journal entry form all adjusting and
correcting journal entries based on the following
information. All information was provided to you as of
12/31/2018. (Round all numbers to the nearest
dollar).
(a) Based on your review of the cash balances,
you note that there was an overdraft of $9,600 in one of your bank
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specific bank where the account with the overdraft is
deposited. The total cash at this bank equaled a debit
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Prepare in journal entry form all adjusting and correcting journal entries based on the following information. All...
Prepare in journal entry form all adjusting and
correcting journal entries based on the following
information. All information was provided to you as of
12/31/2018. (Round all numbers to the nearest
dollar).
(i) Czar has two loans outstanding as of
12/31/2018. Interest is paid annually on January 1st. The facts on
each loan are as follows: First Trust Bank Loan –
outstanding since January 1, 2018 with a 6% interest rate. This
loan was taken out to finance the construction of the...
Prepare in journal entry form all adjusting and correcting journal entries based on the following information. All...
Prepare in journal entry form all adjusting and
correcting journal entries based on the following
information. All information was provided to you as of
12/31/2018. (Round all numbers to the nearest
dollar).
(e) Per a physical count of office supplies,
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in the office supplies account represents last years ending
balance. During the year, $28,000 of office supplies
were purchased and immediately expensed.
(f) On November 1, 2018 Czar paid Ewald
Advertising...
What is the purpose of adjusting entries? Given the following situation, please prepare the adjusting journal...
What is the purpose of adjusting entries? Given the following
situation, please prepare the adjusting journal entries for the end
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6/12/18 – Company X paid $3,500 for cleaning supplies.
6/30/18 – Company X has $2,000 of
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6/1/18 – Company Y paid $2,400 for 12 months of insurance.
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12/31/18 – Company...
Required: Prepare closing journal entries. given the following adjusted ledger balance: Cash
Required: Prepare closing journal entries.
given the following adjusted ledger balance:
Cash 100,000
Accounts
Rec. 300,000
Pre-paid
expenses 50,000
Land 100,000
Equip. 400,000
Accum.
Depr. 175,000
Accts.
Pay. 150,000
Notes
Pay. 50,000
STAR
Capital 100,000
STAR
Drawing 25,000
Income
Summary 0
Sales 805,000
Wage
Exp. 200,000
Maint
Exp. 75,000
Insr.Exp 10,000
Depr.
Exp. 20,000
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