Fish Spotters, Inc., purchased a single-engine aircraft from National Aviation on January 1, 2011. Fish Spotters paid
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Provide the journal entries that National Aviation would record under each of the following independent scenarios.
1. It agrees to take the aircraft back in return for the outstanding note. Assume that the aircraft has a market value of $40,000.
2. It agrees to accept a $5,000 cash payment and a new $35,000 note receivable due in five years. The note stipulates payment of $4,200 annual interest each December 31. Prepare the note receivable amortization table through December 31, 2018, and all entries through December 31, 2016.
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Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
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