Question
In: Accounting
On January 1, 2016, Domino Incorporated provides a loan to Jon Jon Associates in return for...
On January 1, 2016, Domino Incorporated provides a loan to Jon Jon Associates in return for a $5,000,000, 3 year, 5% interest note maturing on December 31, 2018. The normal borrowing rate for Jon Jon is 8%.
1. Prepare the journal entry to record the note receivable
2. Prepare an amortization table using the effective interest method
3. Prepare the journal entries to record the interest revenue in 2016, 2017, & 2018 for Domino
Solutions
Expert Solution
.
.
Please consider upvoting. It will be greatly appreciated
ekkarill92 answered 1 year agoRelated Solutions
Homestead Oil Corp. was incorporated on January 1, 2016, and issued the following stock for cash:...
Homestead Oil Corp. was incorporated on January 1, 2016, and
issued the following stock for cash:
700,000 shares of no-par common stock were authorized; 150,000
shares were issued on January 1, 2016, at $18.00 per share.
250,000 shares of $110 par value, 8.00% cumulative, preferred
stock were authorized, and 71,000 shares were issued on January 1,
2016, at $140 per share.
Net income for the years ended December 31, 2016 and 2017, was
$1,450,000 and $2,490,000, respectively.
No dividends...
Homestead Oil Corp. was incorporated on January 1, 2016, and issued the following stock for cash:...
Homestead Oil Corp. was incorporated on January 1, 2016, and
issued the following stock for cash:
750,000 shares of no-par common stock were authorized; 150,000
shares were issued on January 1, 2016, at $17.00 per share.
280,000 shares of $110 par value, 9.00% cumulative, preferred
stock were authorized, and 51,000 shares were issued on January 1,
2016, at $150 per share.
Net income for the years ended December 31, 2016 and 2017, was
$1,390,000 and $2,530,000, respectively.
No dividends...
Homestead Oil Corp. was incorporated on January 1, 2016, and issued the following stock for cash:...
Homestead Oil Corp. was incorporated on January 1, 2016, and
issued the following stock for cash:
760,000 shares of no-par common stock were authorized; 160,000
shares were issued on January 1, 2016, at $18.00 per share.
270,000 shares of $110 par value, 9.00% cumulative, preferred
stock were authorized, and 66,000 shares were issued on January 1,
2016, at $130 per share.
Net income for the years ended December 31, 2016 and 2017, was
$1,290,000 and $2,610,000, respectively.
No dividends...
Homestead Oil Corp. was incorporated on January 1, 2016, and issued the following stock for cash:...
Homestead Oil Corp. was incorporated on January 1, 2016, and
issued the following stock for cash:
870,000 shares of no-par common stock were authorized; 150,000
shares were issued on January 1, 2016, at $18.00 per share.
290,000 shares of $100 par value, 9.00% cumulative, preferred
stock were authorized, and 67,000 shares were issued on January 1,
2016, at $150 per share.
Net income for the years ended December 31, 2016 and 2017, was
$1,460,000 and $2,490,000, respectively.
No dividends...
Arbuckle Incorporated started operations on January 1, 2016 and purchased $1,000,000 of equipment. The income tax...
Arbuckle Incorporated started operations on January 1, 2016 and
purchased $1,000,000 of equipment. The income tax rate was 40% in
both years. The following information related to 2017 and 2018:
Year
2017
2018
Accounting income before income tax
$275,000
$410,000
Golf club dues
5,000
6,000
Accrued warranty costs
25,000
60,000
Warranty costs paid
20,000
45,000
Depreciation expense on equipment
100,000
100,000
Capital cost allowance
150,000
125,000
a)Calculate taxable income and income tax payable for each
year.
b)Prepare journal...
Common and preferred stock-issuances and dividends Permabilt Corp. Was incorporated on January 1, 2016, and issued...
Common and preferred stock-issuances and
dividends
Permabilt Corp. Was incorporated on January 1, 2016, and issued
the following stock for cash:
4,000,000 shares of no-par common stock were authorized;
1,750,000 shares were issued on January 1, 2016, at $45 per
share.
1,800,000 shares of $100 par value, 7.5% cumulative, preferred
stock were authorized, and 840,000 shares were issued on January 1,
2016, at $105 per share.
Net income for the years ended December 31, 2016, 2017,and 2018
was $38,000,000, $46,000,000,...
On January 1, 2019 Bowlen Inc. gave a loan to Atwater Corp. in return for a...
On January 1, 2019 Bowlen Inc. gave a loan to Atwater Corp. in
return for a 4-year note receivable with a face value of 20,000 and
a 5% stated interest rate. Interest payments are received annually
on 12/31 and the note matures on December 31, 2022. The market rate
for similar loans is 6%.
Date
Cash Received
Interest Revenue
Disc/Prem Amortized
Carrying Amount
1-Jan
Please prepare the necessary journal
entries for Bowlen Inc. in 2019.
Please prepare the necessary journal...
Timmer Company signs a lease agreement dated January 1, 2016, that provides for it to lease...
Timmer Company signs a lease agreement dated January 1, 2016,
that provides for it to lease equipment from Landau Company
beginning January 1, 2016. The lease terms, provisions, and related
events are as follows:
•
The lease is noncancelable and has a term of 5 years.
•
The annual rentals are $83,222.92, payable at the end of each
year, and provide Landau with a 12% annual rate of return on its
net investment.
•
Timmer agrees to pay all executory...
Timmer Company signs a lease agreement dated January 1, 2016, that provides for it to lease...
Timmer Company signs a lease agreement dated January 1, 2016,
that provides for it to lease equipment from Landau Company
beginning January 1, 2016. The lease terms, provisions, and related
events are as follows:
•
The lease is noncancelable and has
a term of 5 years.
•
The annual rentals are $83,222.92,
payable at the end of each year, and provide Landau with a 12%
annual rate of return on its net investment.
•
Timmer agrees to pay all executory...
Adden Company signs a lease agreement dated January 1, 2016, that provides for it to lease...
Adden Company signs a lease agreement dated January 1, 2016,
that provides for it to lease heavy equipment from Scott Rental
Company beginning January 1, 2016. The lease terms, provisions, and
related events are as follows: 1. The lease term is 4 years. The
lease is noncancelable and requires annual rental payments of
$20,000 to be paid in advance at the beginning of each year. 2. The
cost, and also fair value, of the heavy equipment to Scott at the...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- A)Given a generic array with ‘n’ items (not only integers). Give a solution for checking whether...
- Explain virtualization as a key technology in cloud computing environments, as well as the purpose of...
- A system is set up to take raw grading information from the console and calculate a...
- I have an 8 by 8 array that has values ranging from 1-64. I am wanting...
- The background information and instruction of the question is provided below, and i only asked for...
- Which business or industry sectors have the most startups companies that consider a small and medium...
- 16. Cost of trade credit Firms usually offer their customers some form of trade credit. This...
ADVERTISEMENT