Submit TB Problem 10-215 (Algo) Cool Globe Incorporated entered... Cool Globe Incorporated entered into two transactions,...

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Submit TB Problem 10-215 (Algo) Cool Globe Incorporated entered... Cool Globe Incorporated entered into two transactions, as follows: 1. Purchased equipment paying $19,300 at the date of purchase and signing a noninterest-bearing note requiring the balance to be paid in five annual installments of $19,300 on the anniversary date of the contract. Based on Cool Globe's 8% borrowing rate for such transactions, the implicit interest cost is $19.441. 2. Purchased a tract of land in exchange for $11,700 cash that was paid immediately and signed a noninterest-bearing note requiring six $11,700 annual payments. The first annual payment of the note is due in one year. The fair value of the land is $66.200 Required: Prepare the journal entries for these transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Submit TB Problem 10-215 (Algo) Cool Globe Incorporated entered... Cool Globe Incorporated entered into two transactions, as follows: 1. Purchased equipment paying $19,300 at the date of purchase and signing a noninterest-bearing note requiring the balance to be paid in five annual installments of $19,300 on the anniversary date of the contract. Based on Cool Globe's 8% borrowing rate for such transactions, the implicit interest cost is $19.441. 2. Purchased a tract of land in exchange for $11,700 cash that was paid immediately and signed a noninterest-bearing note requiring six $11,700 annual payments. The first annual payment of the note is due in one year. The fair value of the land is $66.200 Required: Prepare the journal entries for these transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list

Answer rating: 100% (QA)

Here are the journal entries for the transactions Purchased equipment with a noninterestbearing not... View the full answer