Question: On Jan. 1, 2020, Bobcat Brewing Co., sold a 1-acre land parcel to CBD, Inc. CBD gave a zero- interest-bearing note with a maturity

On Jan. 1, 2020, Bobcat Brewing Co., sold a 1-acre land parcel to CBD, Inc. CBD gave a zero- interest-bearing note with a mat

On Jan. 1, 2020, Bobcat Brewing Co., sold a 1-acre land parcel to CBD, Inc. CBD gave a zero- interest-bearing note with a maturity payment of $112,204 due Dec. 31, 2024. CBD's credit rating makes it eligible to borrow money at 7% interest compounded annually from local banks. Bobcat Brewing originally purchased the 1-acre land parcel for $60,000 in 2012. Instructions: For Bobcat Brewing Company: Record the journal entries related to this transaction assuming Bobcat Brewing has a December 31, 2019 year end. (Show all calculations above and round your answer to an even dollar amount.) Accounts Debit Credit

Step by Step Solution

★★★★★

3.38 Rating (148 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Fair value of promissory note Amount 1 rn 112204 1 0075 80000 Accounts Debit Credit 2020 ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Question 3 Find the equation of the plane containing the point P(0, 2, 5) and the line r(t) =(2, 1, 5) + t(2, -3, -2). [Hint: First find two vectors parallel to the plane (that is, find two vectors...

Step 1 : Jan 1 Purchased merchandise on account from Kimberly Supply Co 3900 terms 210 n30 Jan 4 Sold merchandise on account 5000 to Able Inc shipped FOB Destination terms 110 n30 Jan 6 Paid 250...

Aston Ltd is a luxury goods manufacturer in the process of diversifying its business. Aston Ltd has reached an agreement with Chivas Ltd, a small basic materials company, to take over Chivas Ltd. The...

On Jan. 1, 2020, Bobcat Brewing Co., sold a 1-acre land parcel to CBD, Inc. CBD gave a zero- interest-bearing note with a maturity payment of $112,204 due Dec 31, 2024. CBD's credit rating makes it...

Can someone please review my work and make sure I'm on the right track? Any feedback would be greatly appreciated. Thanks. On Jan. 1, 2020, Evening Inc., sold a 1-acre land parcel to XYZ, Inc. XYZ...

I've attached the question as a word file, thanks! JWCL165_c10_444-505.qxd 8/12/09 7:24 AM Page 444 10 Liabilities Chapter STUDY OBJECTIVES After studying this chapter, you should be able to: 1...

I've attached the question as a word file, thanks! c04AccrualAccountingConcepts.qxd 8/3/10 1:50 PM Page 162 chapter 4 ACCRUAL ACCOUNTING CONCEPTS the navigator Scan Study Objectives Read Feature...

I've attached the questions as a word file. Thanks! c04AccrualAccountingConcepts.qxd 8/3/10 1:50 PM Page 162 chapter 4 ACCRUAL ACCOUNTING CONCEPTS the navigator Scan Study Objectives Read Feature...

i need a solution of computional problems i really need help on those. Chapter 15Leases MULTIPLE CHOICE 1. Generally accepted accounting principles require that certain lease agreements be accounted...

H 2 Instructions: 3 You are the controller at Star Wars, Inc., a wholesale distributor of light sabers and other interstellar weaponry. The corporation 4 was founded in galaxy far, far away a long...

A quasi-isotropic laminate is defined as one whose extensional stiffnesses are isotropic. Does the four-ply laminate [0/ 45/90] T satisfy this criterion? How about the [0/45/90] S laminate?

a) Find a power series representation for the function and determine the radius of convergence for f(x)=x^2/ (1-2x^2) ^ 2. Do not use binomial expansion. Use 1/(1-r) method to solve. b) Use a power...

Political factor on impact of covid 1 9 for delivery and logistic service

Why might an auditor be likely to adopt a client's judgment frame in performing analytical procedures, and how might that frame affect her or his evaluation of the findings from the procedures that...

Suppose that you were given the following data for past excess quarterly returns for Markese Imports, Inc., and for the market portfolio: On the basis of this information, graph the relationship...

Dave Ladouceur owns a catering company that prepares banquets and parties for both individual and business functions throughout the year. Mr. Ladouceurs business is seasonal, with a heavy schedule...

World Class Work Shoes had the following balances at December 31, 2016, before the year-end adjustments: The aging of accounts receivable yields the following data: Requirements 1. Journalize World...

The Miller Corporation acquired 30% of the outstanding common stock of the Crowell Corporation for $160,000 on January 1, 2007 and obtained significant influence. The purchase price of the shares was...

can u answer these 1. You were sailing on a cruise ship when it hit a large rock and began to sink. Your lifeboat managed to get away safely and you ended up sailing to a desert island. After sailing...

Pleasehelp, its ok no explanation.. no choices for no.38 thank you Cash - P800,000, Jar, 1, 2020; P xxxxx xx77 , Doc. 31, 2020; Cash - P830,000, Jan, 1, 2020; P xxxxxxx?? . Dec. 31, 2020; Accounts...

Helpppp, its okay if no explanation Cash - P800,000, Jan, 1, 2020; P xxxxxxx?7, Dec. 31, 2020; Accounts Receivable - P50,000, jan 1, 2020; P220,000, Dec. 31, 2020; Inventory - P30,000, Jan. 1, 2020,...

the question is show in the pictures, thx for your answer. WP Homework Assignment 8 X C On January 1, 2020, Buffalo X D 365 izmnij1' 9:2* - D X M Men's Designer Clothing Sal X S Rick Owens Drkshow:...

On January 1, 2020, Company A agrees to pay a lump sum pension to the employees equal to 5% of their final salary times the number of years worked after January 1, 2020. It is estimated that the...

PROBLEM #1 On Jan. 1, 2020, GHI Corporation acquired a P2,000,000 equipment which it accounts under the revaluation model. It can be used in the production line for 10 years. After use, it can be...

Precision Equipment specializes in the manufacture of medical equipment, a field that has become increasingly competitive. Approximately 2 years ago, Pedro Mendez, president of Precision, decided to...