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
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Based on information given in the attached Excel
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Problem (1)
Prepare journal entries to record each of the
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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
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Mar 15 paid the amount due from the March 5 purchase...
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Question 2: prepare the journal entries for the following cases: 1- The cost of equipment SR75,000...
Question 2: prepare the journal entries
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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
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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
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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
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Prepare in journal entry form all adjusting and correcting journal entries based on the following information. All...
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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
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each loan are as follows: First Trust Bank Loan –
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Prepare in journal entry form all adjusting and correcting journal entries based on the following information. All...
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correcting journal entries based on the following
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dollar).
(e) Per a physical count of office supplies,
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What is the purpose of adjusting entries? Given the following situation, please prepare the adjusting journal...
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6/30/18 – Company X has $2,000 of
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Required: Prepare closing journal entries. given the following adjusted ledger balance: Cash
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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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