Question

The Houston Corporation acquires machinery from the South Company in exchange for a $20,000 non-interest-bearing, five-year note on June 30, 2009. The note is due on June 30, 2014. The machinery has a fair value of $11,348.54, is subject to straight-line depreciation, and has an estimated life of 10 years (no residual value). Houston’s fiscal year ends June 30.

Required
Prepare the journal entries on each of the following dates to record the preceding information for Houston Corporation:
1. June 30, 2009
2. June 30, 2010
3. June 30, 2011
4. June 30, 2012
5. June 30, 2013
6. June 30, 2014



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  • CreatedDecember 09, 2013
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