On January' 1, Kilgore Inc. accepts a $20,000 non interest bearing, 5-year note from Dicland Company for equipment. Neither the fair value of the note nor the equipment is determinable. Kilgore had originally purchased the equipment for $18,000, and the equipment has a book value of $14,000 on January' 1. Kilgore knows Dicland’s incremental borrowing rate of 9%. Prepare the journal entry' for Kilgore to record the sale of the equipment on January' 1.
Answer to relevant QuestionsRefer to the information in RE13-1. Prepare the journal entry' on June 30 for Gatrong to record the first interest receipt, using the effective interest method. Round to the nearest dollar. In RE13-1 On January' 1, 2016, ...On April 30, 2016, Aggie Corporation purchased available-for-sale securities. These securities consisted of (a) Smith Corporation 10%, 5-ycar bonds with a face value of $12,000 which were purchased at par plus four months of ...On January 1, 2016, Somerville Corporation sold a used truck to Cornelius Company and LO 13.8 accepted a $28,000 non-interest-beating note due January 1, 2019. Somerville carried the truck on its books at a cost of $30,000 ...What are the three categories of minority passive investments in debt and equity securities? Describe the criteria used to classify the investments into these three categories. Refer to the information in RE 14-3. Lightfoot uses the effective interest method to amortize the premium. Prepare the journal entry to record the first interest payment. In RE14-3 Lightfoot Corporation issues 10%, 5-year ...
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