Ayayai Corporation issued a 3-year, $58,000,5% note to Blossom Company on January 1, 2017, and received an

Fantastic news! We've Found the answer you've been seeking!

Question:

Ayayai Corporation issued a 3-year, $58,000,5% note to Blossom Company on January 1, 2017, and received an excavator that normally sells for $53,031. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 9%.

Prepare Ayayai's journal entries for (a) the January 1 issuance and (b) the December 31 interest.

Related Book For answer-question

Financial Reporting and Analysis

ISBN: 978-1259722653

7th edition

Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer

See More Books

Posted Date: Sep 15, 2020 01:21 AM

See More Questions

Following are the issuances of stock transactions. 1. A corporation issued 3,000 shares of $30 par value common stock for $108,000 cash. 2. A corporation issued 1,500 shares of no-par common stock to...
On January 1, 2018, LMU, Inc. issued $250,000 of 6%, 10 year bonds for $216,025, yielding an effective interest rate of 8%. Semiannual interest is payable on June 30 and December 31 each year. The...
2x 8. Solve the initial value problem y' - (22) y = 0, y(0) = 3
Evaluate triple integrate (x^2+y^2+z^2)dx dy dz where R denotes the region bounded by x = 0, y = 0, z = 0 and x + y + z = a, (a > 0)
An inventor claims to have developed a refrigeration system that removes heat from the closed region at -12C and transfers it to the surrounding air at 25C while maintaining a COP of 6.5. Is this...
Draw a graph to illustrate the effects of the import quota. On the graph, identify the the importers profit. Wholesalers buy and sell roses in containers that hold 120 stems. The table provides data...
A proximity probe has a useful frequency range related to what operating parameter?
The assets and liabilities of Beckwith Garden Supply, Inc., as of December 31, 2016, and revenues and expenses for the year ended on that date follow: Beginning retained earnings was $364,200, and...
Discuss the challenges and opportunities of scaling up process intensification concepts from laboratory-scale experiments to industrial-scale applications, addressing issues related to...
Determine the monthly cash flows and total cash generated at the end of each month and just before the payment is received for the construction of a house with the following budget and schedule. On...
Map the logical data model provided to a directed graph using the graph mapping rules included in this module. Submit a graph diagram including the vertices, directed edges, association types and any...
A. As you choose a culture or cultures to learn about, which do you think would be most helpful for your career? Why? B. Explain what cultural intelligence is. How is it similar to and different from...
The conventional Taylor rule places weights of one-half on the inflation gap and output gap, corresponding to the dual mandate of the U.S. central bank. Taking into account what you know about the...
Think about a culture of interest to you. Do the following: A. Describe five preconceptions or stereotypes you have about the culture. B. Conduct some research and find out how correct you are. Use...
Interview at least two professionals from at least two generations. Ask them about their views of similarities and differences between professionals of various generations. Consider asking questions...
Read at least three blogs or articles about trust and/or ethics from a reputable organization or other source. Choose an issue that interests you, and in four to five paragraphs, summarize key...
Database Name: _____________________________ Table Name: _____________________________ Must have at least 6 columns in your table: Column Name (Sqlite Data Types are: text, integer, or real) ...
For each of the following transactions, indicate whether it increases, decreases, or has no effect on the following financial ratios: current ratio, debt-to-equity ratio, profit margin ratio, and...
(Note: Students may want to review the material on the equity method of accounting in Chapter 16 before beginning work on this problem.) In the current year, 2017, Reality Corporation reported...
Hestor Company's records indicate the following information: Merchandise inventory, January 1, 2017.............................................$ 550,000 Purchases, January 1 through December 31,...
On February 1, 2015, Davis Corporation issued 12%, $1,000,000 par, 10-year bonds for $1,117,000. Davis reacquired all of these bonds at 102% of par, plus accrued interest, on May 1, 2018, and retired...
Presented below is selected information related to Tsui Repairs at December 31, 2025. Tsui reports financial information monthly (amounts in thousands). a. Determine the total assets of Tsui Repairs...
Explain the career opportunities in accounting.
Collins Computer Timeshare entered into the following transactions during May 2025. 1. Purchased computers for R$$20,000$ from Digital Equipment on account. 2. Paid R$$4,000$ cash for May rent on...

Ayayai Corporation issued a 3-year, $58,000,5% note to Blossom Company on January 1, 2017, and received an

Question:

Account Titles and Explanation Debit Credit (a) (b) Account Titles and Explanation Debit Credit (a) (b)

Expert Answer:

Financial Reporting and Analysis

Students also viewed these accounting questions