On december 28, 20x1, company purhcased a used backhoe for resale at an agreed price of...
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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%.
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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
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