John Company purchases used equipment form Moore Inc. on January 1, 2018 issuing a zero-interest note for $4,000,000 that matures in 4 years. The market value of the equipment is not readily available. John Company’s normal borrowing rate is 8%:
a. Record the journal entries at January 1, 2018 (at purchase), the interest entry (if necessary) for each year until maturity of the note and the entry to record the maturity of the note.
In: Accounting
linton company purchased a delivery truck for 33.000 on january 1 2017 the truck has an expected salvage value of 1,300 and is expected to be driving 109,000 miles over its esitmated useful of life of 9 years. acutal miles driving were 15,400 for 2017 and 12,500 in 2018 what is the depreication expense for 2017 and 2018 using the stright line method , the unit of activity method and the decling balance method
In: Accounting
Using the following free cash flow data:
Year Cash Flow
2017 $4,000,000
2018 $4,400,000
Please show your work so I can recreate in excel
In: Finance
In: Accounting
Larkspur Corporation had the following tax
information.
|
Year |
Taxable Income |
Tax Rate |
Taxes Paid |
|||||||
| 2015 | $294,000 | 32% | $94,080 | |||||||
| 2016 | 319,000 | 27% | 86,130 | |||||||
| 2017 | 396,000 | 27% | 106,920 | |||||||
In 2018, Larkspur suffered a net operating loss of $487,000, which
it elected to carry back. The 2018 enacted tax rate is 26%.
Prepare Larkspur’s entry to record the effect of the loss
carryback.
In: Accounting
On January 1, 2018, Stoops Entertainment purchases a building for $480,000, paying $110,000 down and borrowing the remaining $370,000, signing a 9%, 10-year mortgage. Installment payments of $4,687.00 are due at the end of each month, with the first payment due on January 31, 2018. Complete the first three rows of amortization schedule. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
In: Accounting
Suppose you opened a new account and invested $10,000 in your asset in the beginning of 2014, that on June 30, 2016 you invested an additional $5,000, and that on January 31, 2017 you withdrew $2,000.
If there were no other cash flows coming into or out of the account, what was the dollar balance at the end of 2018 (yes, do include the effect of the return earned during December 2018)?
Rate of return -0.88
In: Finance
A Firm purchased an old Machinery for RM37,000 on 1 January, 2017 and spent RM3,000 on its overhauling. On 1 July 2018, another machine was purchased for RM 10,000. On 1 July 2019, the machinery which was purchased on 1 January 2017, was sold for RM28,000 and the same day a new machinery costing RM25,000 was purchased. On 1 July, 2020, the machine which was purchased on 1 July, 2018 was sold for RM2,000. Depreciation is charged at 10% per annum on straight line method. The firm changed the method and adopted diminishing balance method with effect from 1 January, 2018 and the rate was increased to 15% per annum. The books are closed on 31 December every year.
Required:-
Prepare Machinery account for four years from 1 January 2017.
In: Accounting
A Firm purchased an old Machinery for RM37,000 on 1 January, 2017 and spent RM3,000 on its overhauling. On 1 July 2018, another machine was purchased for RM 10,000. On 1 July 2019, the machinery which was purchased on 1 January 2017, was sold for RM28,000 and the same day a new machinery costing RM25,000 was purchased. On 1 July, 2020, the machine which was purchased on 1 July, 2018 was sold for RM2,000. Depreciation is charged at 10% per annum on straight line method. The firm changed the method and adopted diminishing balance method with effect from 1 January, 2018 and the rate was increased to 15% per annum. The books are closed on 31 December every year.
Required:
Prepare Machinery account for four years from 1 January, 2017.
In: Other
When Patey Pontoons issued 4% bonds on January 1, 2018, with a
face amount of $580,000, the market yield for bonds of similar risk
and maturity was 5%. The bonds mature December 31, 2021 (4 years).
Interest is paid semiannually on June 30 and December 31. (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use
appropriate factor(s) from the tables provided.)Required:
5. What is the amount related to the bonds that
Patey will report in its balance sheet at December 31, 2018?
6. What is the amount related to the bonds that
Patey will report in its income statement for the year ended
December 31, 2018? (Ignore income taxes.)
7. Prepare the appropriate journal entries at
maturity on December 31, 2021.
In: Accounting