Khajepour Corporation issued a $140,000, four-year, zero-interest-bearing note to Saccomanno Corp. on January 1, 2011, and received $140,000 cash. In addition, the company agreed to sell merchandise to Saccomanno for an amount less than the regular selling price over the four-year period. The market interest rate for similar notes is 8%. Prepare Khajepour’s January 1 journal entry.
Answer to relevant QuestionsPflug Ltd. signed an instalment note on January 1, 2011 in settlement of an account payable of $40,000 owed to Mott Ltd. Pflug is able to borrow funds from its bank at 11%, whereas Mott can borrow at the rate of 10%. The ...Minor Inc. sells 10% bonds having a maturity value of $3 million for $2,783,724. The bonds are dated January 1, 2011, and mature on January 1, 2016. Interest is payable annually on January 1. Instructions Set up a schedule ...On January 2, 2006, Brueckner Corporation, a small company that follows private enterprise GAAP, issued $1.5 million of 10% bonds at 97 due on December 31, 2015. Legal and other costs of $110,000 were incurred in connection ...Use the information in E14–23 and the assumptions in E14–25 and answer the following questions related to Green Bank (the creditor). In E On December 31, 2011, Green Bank enters into a debt restruc- turing agreement ...On June 1, 2011, MacDougall Corporation approached Silverman Corporation about purchasing a parcel of undeveloped land. Silverman was asking $240,000 for the land and MacDougall saw that there was some flexibility in the ...
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