On July 1, 2020, Tamarisk Inc. made two sales. 1. It sold land having a fair...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On July 1, 2020, Tamarisk Inc. made two sales. 1. It sold land having a fair value of $903,330 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,421,403. The land is carried on Tamarisk's books at a cost of $595,200. 2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $402,650 (interest payable annually). Tamarisk Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest. Record the two journal entries that should be recorded by Tamarisk Inc. for the sales transactions above that took place on July 1, 2020. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and final answers to O decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Credit July 1, 2020 1. 2 July 1, 2020 Debit On July 1, 2020, Tamarisk Inc. made two sales. 1. It sold land having a fair value of $903,330 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,421,403. The land is carried on Tamarisk's books at a cost of $595,200. 2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $402,650 (interest payable annually). Tamarisk Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest. Record the two journal entries that should be recorded by Tamarisk Inc. for the sales transactions above that took place on July 1, 2020. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and final answers to O decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Credit July 1, 2020 1. 2 July 1, 2020 Debit
Expert Answer:
Answer rating: 100% (QA)
Tamarisk Inc Journal Enteries Date Particulars 172020 Notes Receivable ac ... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
1. It sold land having a fair value of $915,830 in exchange for a 3-year zero-interest-bearing promissory note in the face amount of $1,252,520. The land is carried on Agincourt's books at a cost of...
-
A capital asset (equipment) with a fair value of $1,500,000 and a remaining useful life of ten years and land with a fair value of $2,000,000 is donated to a not-for-profit organization. The...
-
Orange, Inc. purchased a building, having a fair value of $600,000 on February 1, 2025 by signing a 4-year, zero-interest bearing note with a face amount of $437,000. What would Orange record on...
-
What is SAV? What are some economic forces that can help explain SAV? What are some demographic and other considerations? How might physician uncertainty lead to SAV?
-
Annuity Life Insurance Company (ALIC) markets several types of life insurance policies, but P20A-a permanent, 20-year life annuity policy-is its most popular. This policy sells in $10,000 increments...
-
If human height were quantized in one-foot increments, what would happen to the height of a child as she grows up?
-
Ignoring taxes, if a company understates its ending inventory by \(\$ 10,000\) in the current year, a. assets for the current year will be overstated by \(\$ 10,000\). b. net income for the...
-
This information is available for Sepia Photo Corporation for 2012, 2013, and 2014. Instructions Calculate inventory turnover, days in inventory, and gross profit rate (from Chapter 5) for Sepias...
-
On January 1 , 2 0 2 5 , Riverbed Corporation redeemed $ 6 5 0 , 0 0 0 of bonds at 9 7 . At the time of redemption, the unamortized premium was $ 1 9 , 5 0 0 . Prepare the corporation's journal entry...
-
Regulators, in protecting the public interest, are examining Wincox Insurance Company's financial statements. These regulators impose requirements on Wincox's financial statements because of which...
-
2021 TR 11:00-12:15 Homework: Ch 14 Homework A - Graded core: 0 of 10 pts SF14-6 (similar to) Assigned Media w 4 of 9 3 complete Powell Company issued a $500,000, 11%, ten-year bond payable at face...
-
Saginaw Inc. completed its first year of operations with a pretax loss of $555,000. The tax return showed a net operating loss of $692,000, which the company will carry forward. The $137,000 book-tax...
-
Define and explain the growth phases of fatigue cracks in aircraft. Provide examples.
-
In which situations, if any, would it be appropriate to use GPS when employees are 'off the clock"? The case discusses various GPS devices, but some companies in the U.S. and Europe have started...
-
(1) discuss the pros and cons of using Standards vs. Competitions/Awards for driving business improvement. (2) If you had to construct a company scoreboard of metrics, what would it look like...
-
Cartier Co manufactures wooden toy vehicles. The company operates a standard costing system and values inventory at standard cost. The following is an extract of a partly completed spreadsheet for...
-
Managing projects in a non pm role podcast 23 with josh cronk After watching the discussion, identify one significant idea or concept that was discussed. For this idea or concept, analyze it as follo
-
Outline some of the major problems confronting an international advertiser.
-
Why should inventories be included in (a) a statement of financial position and (b) the computation of net income?
-
Maher AG reported income before income tax during 2019 of 790,000. Additional transactions occurring in 2019 but not considered in the 790,000 are as follows. 1. The company experienced an uninsured...
-
Answer each of these unrelated questions a. On January 1, 2019, Yang Ltd. sold a building that cost 25,000,000 and that had accumulated depreciation of 10,000,000 on the date of sale. Yang received...
-
Dale Company experiences heavy sales in the summer and early fall, after which time it has excess cash to invest until the next spring. On November 1, 20x6, the company invested $194,000 in U.S....
-
Scattergraph method Using the data in E4-2 and a piece of graph paper: 1. Plot the data points on the graph and draw a line by visual inspection, indicating the trend shown by the data points. 2....
-
Computing unit costs at different levels of production Perfumeria, Inc., budgeted for 12,000 bottles of product Si during the month of May. The unit cost of Si was \(\$ 20\), consisting of direct...
Study smarter with the SolutionInn App