On december 28, 20x1, company purhcased a used backhoe for resale at an agreed price of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On december 28, 20x1, company purhcased a used backhoe for resale at an agreed price of $40,000. terms of purchase: 1: $10,000 down payment 2: note payable face amount = $30,000. Maturity date is 12/28/20x3 Give the journal entries that Evans should have made for 20x1 and 20x2. Also give the entries that should be made through the maturity date, 12/28/20x3. Ignore materiality - i.e., record interest for short periods, e.g., a few days at year end. When calculating interest, use 365 days. You may not use the straight-line method. Assume a discount rate of 12%. On december 28, 20x1, company purhcased a used backhoe for resale at an agreed price of $40,000. terms of purchase: 1: $10,000 down payment 2: note payable face amount = $30,000. Maturity date is 12/28/20x3 Give the journal entries that Evans should have made for 20x1 and 20x2. Also give the entries that should be made through the maturity date, 12/28/20x3. Ignore materiality - i.e., record interest for short periods, e.g., a few days at year end. When calculating interest, use 365 days. You may not use the straight-line method. Assume a discount rate of 12%.
Expert Answer:
Answer rating: 100% (QA)
Answer Note payable PV factor of 12 2 year Present value Date Dec 28 20X1 Dec 28 20X2 Dec 28 20X3 Jo... View the full answer
Related Book For
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
Posted Date:
Students also viewed these accounting questions
-
Use the data from Exercise to make the journal entries that Smith should record on September 30 to update his Cash account. Include an explanation for each entry. Harry Smith operates a bowling...
-
Use the information in RE21-3. Prepare the journal entries that Garvey Company would make in the first year of the lease assuming the lease is classified as a capital lease. Assume that Garvey is...
-
Use the information in RE21-3. Prepare the journal entries that Garvey Company would make in the first year of the lease assuming the lease is classified as a capital lease. However, assume that...
-
What is the difference between a market system and a market? How Can you have a market without a market system? Why or why not? How about the other way around? Can you have a market system without a...
-
What are the characteristics of prepayments that qualify as assets? What is the accounting for prepayments?
-
What are the vision, mission, and values of Better World Books? Critically evaluate their usefulness to the company's leaders in formulating strategic intent.
-
14. ROLE REVERSAL Write a multiple-choice question about defamation in which one and only one element is missing from the plaintiff's case. Choose a set of answers that forces the student to isolate...
-
On January 1, 2013, Baldwin Products, as lessee, leases a machine used in its operations. The annual lease payment of $10,000 is due on December 31 of 2013, 2014, and 2015. The machine reverts to the...
-
O Points: 0 of 1 Save Pisa Pizza, a seller of frozen pizza, is considering introducing a healthier version of its pizza that will be low in cholesterol and contain no trans fats. The firm expects...
-
In this lab we will be investigating the relationship between the height of a roller coaster and its speed. Suppose we are interested in the question; Does the height of the roller coaster relate to...
-
An oral presentation is one of the most important skills in business communication. Students will develop a 3 to 4-minute scripted training presentation that focuses on the foundations of business...
-
Sandhill Company had the following account balances on December 31, 2022. Retained earnings $56,600 Common stock $78,200 Notes payable 18,000 Interest payable 5,300 Bonds payable 27,000 Accounts...
-
Assume receivables of $ 2 0 , 0 0 0 at the start of the January are all collected during the month; if sales for January and February are $ 4 0 0 , 0 0 0 and $ 3 0 0 , 0 0 0 respectively; the company...
-
Explore the depiction of existential angst in the works of 20th-century existentialist authors. How do these themes reflect broader societal shifts, and what philosophical questions do they pose ?
-
4. Let A = {a, b, c}, B = {x, y}, and C = {0, 1}. Find a) A x B x C. b) C x B x A. c) C x A x B. d) B x B x B.
-
Analyze the role of intertextuality in contemporary literary fiction. How do authors use this technique to enrich their narratives or comment on the nature of storytelling ?
-
Compute the cash conversion cycle for a firm with $3 million average inventory, $1.8 million average trade receivables, $1.3 million average trade payables, an annual cost of goods sold of $8...
-
6. (Potential Energy and Conservation of Energy) What should be the spring constant k of a spring designed to bring a 1200-kg car to rest from a speed of 95 km/h so that the occupants undergo a...
-
Indicate whether each of the following statements is true or false: a. The cash basis of accounting recognizes revenues when they are received. b. In the cash basis of accounting, there is no such...
-
What are revenue recognition criteria, and how does the matching concept relate to these criteria?
-
Headquartered in Quebec, RONA Inc. operates approximately 700 stores of various sizes and formats across Canada and is the largest Canadian distributor and retailer of hardware, home renovation, and...
-
On December 31, 2020, for GAAP purposes, Clubs Inc. reported a balance of \(\$ 70,000\) in Prepaid Maintenance Expense for services to be received over the following year. For tax purposes, however,...
-
On December 31, 2020, for GAAP purposes, Clubs Inc. reported a balance of \(\$ 40,000\) in a warranty liability for anticipated costs to satisfy future warranty claims. No claims were paid in 2020....
-
The records of Anderson Inc. provide the following information for the tax year 2020. - There was no beginning balance in deferred tax account(s). - Taxable income for 2020 was \(\$ 60,000\). - Tax...
Study smarter with the SolutionInn App