NEED FULL STEPS AND EXPLANATIONS PLS. WILL UPVOTE IF DONE PROPERLY Вох 18 + AFor James, Box 1 = 8 +6 = 14Q1. Bob the Builder purchases an equipment, which will last Boxl:no residual value on April 1, Year 7. The company issues an $800,000, four-year, non-interest-bearing note for the equipment when the prevailing market interest rate for notes of this nature is8%. The company will pay off the note in four $200,000 installments on each March 31, startingMarch 31, Year 8. The company adopts mid-month convention for depreciation anddepreciation expense is recognized once at the end of the fiscal year, which is December 31,using straight-line method.years withраy(1) Calculate depreciation expense to be recognized on December 31, Year 7.(2) Prepare the journal entry related to note payable on March 31, Year 8.

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Answered: (1) Calculate depreciation expense to…

(1) Calculate depreciation expense to be recognized on December 31, Year 7. (2) Prepare the journal entry related to note payable on March 31, Year 8.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 12MC: (Appendix 14.1)Pamlico Company has a 500,000, 15%, 3-year note dated January 1, 2019, payable to...

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Question

NEED FULL STEPS AND EXPLANATIONS PLS. WILL UPVOTE IF DONE PROPERLY

Вох 1
8 + A
For James, Box 1 = 8 +6 = 14
Q1. Bob the Builder purchases an equipment, which will last Boxl:
no residual value on April 1, Year 7. The company issues an $800,000, four-year, non-interest-
bearing note for the equipment when the prevailing market interest rate for notes of this nature is
8%. The company will pay off the note in four $200,000 installments on each March 31, starting
March 31, Year 8. The company adopts mid-month convention for depreciation and
depreciation expense is recognized once at the end of the fiscal year, which is December 31,
using straight-line method.
years with
раy
(1) Calculate depreciation expense to be recognized on December 31, Year 7.
(2) Prepare the journal entry related to note payable on March 31, Year 8.

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