On January 1, 2017 Hoff sold land to Run Company, accepting a 3-year $200,000 non-interest-bearing note...
On January 1, 2017 Hoff sold land to Run Company, accepting a 3-year $200,000 non-interest-bearing note due January 1, 2018. The fair value of the land is $146,238. The land was originally
purchased for $136,500 on January 1, 2010. An appropriate rate of interest for a note of this
caliber is 11%.
Required:
Prepare all the journal entries in Hoff's books for the January 1,2017 through January 1, 2018, in regards to the Run note.
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On January 1, 2017 Hoff sold land to Run Company, accepting a
3-year $200,000 non-interest-bearing note...
On January 1, 2016, Crouser Company sold land to Chad Company, accepting a 2-year, $150,000, non-interest-bearing...
On January 1, 2016, Crouser Company sold land to Chad Company, accepting a 2-year, $150,000, non-interest-bearing note due January 1, 2018. The fair value of the land was $126,252.00 on the date of sale. Crouser purchased the land for $105,000 on January 1, 2010. Required: Prepare all the journal entries on Crouser’s books for January 1, 2016, through January 1, 2018, in regard to the Chad note.
On January 1, 2016, Crouser Company sold land to Chad Company, accepting a 2-year, $150,000, non-interest-bearing...
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On January 1, 2019, Worthylake Company sold used machinery to Brown Company, accepting a $25,000, non-interest-bearing...
On January 1, 2019, Worthylake Company sold used machinery to
Brown Company, accepting a $25,000, non-interest-bearing note
maturing on January 1, 2021. Worthylake carried the machinery on
its books at a cost of $21,000 and a current book value of $16,000.
Neither the fair value of the machinery nor the note was
determinable at the time of sale; however, Brown’s incremental
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Required:
Prepare the journal entries on Worthylake’s books to
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1.
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Notes Receivable Instructions Chart of Accounts General Journal Present Value Tables Instructions On January 1, 2016, Crouser Company sold land to Chad Company, accepting a 2-year, $150,000, non-interest-bearing note due January 1, 2018. The fair value of the land was $123,966.90 on the date of sale. Crouser purchased the land for $110,000 on January 1, 2010. Required: Prepare all the journal entries on Crouser’s books for January 1, 2016, through January 1, 2018, in regard to the Chad note. Chart...
On January 1, 2019, Worthylake Company sold used machinery to
Brown Company, accepting a $25,000, non-interest-bearing note
maturing on January 1, 2021. Worthylake carried the machinery on
its books at a cost of $21,000 and a current book value of $16,000.
Neither the fair value of the machinery nor the note was
determinable at the time of sale; however, Brown’s incremental
borrowing rate was 10%.
Required:
Prepare the journal entries on Worthylake’s books to
record:
1.
sale of the machinery...
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Presented below are two independent situations: (a) On January 1,2017, Stellar Inc. purchased land that had an assessed value of $ 322,000 at the time of purchase. A $517,000, zero-interest-bearing note due January 1,2020, was given in exchange. There was no established exchange price for the land, nor a ready fair value for the note. The interest rate charged on a note of this type is 12%. Determine at what amount the land should be recorded at January 1,2017, and...
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