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Becker Motors purchased a custom-made metal press for use in repairing wrecked cars. The press was installed on January 2, 2016. The press had a market value of $320,000. Becker agreed to pay for the press in three equal installments beginning December 31, 2016. At the time, Hornet's incremental borrowing rate was 8%. Required: Prepare the first two years of the amortization table for the note payable. Prepare the journal entries to record (1) the purchase of the machine, (2) the first annual payment, and (3) the 2 nd annual payment. Round to the nearest dollar

Becker Motors purchased a custom-made metal press for use in repairing wrecked cars. The press was installed on January 2, 2016. The press had a market value of $320,000. Becker agreed to pay for the press in three equal installments beginning December 31, 2016. At the time, Hornet's incremental borrowing rate was 8%. Required: Prepare the first two years of the amortization table for the note payable. Prepare the journal entries to record (1) the purchase of the machine, (2) the first annual payment, and (3) the 2 nd annual payment. Round to the nearest dollar

Intermediate Accounting: Reporting And Analysis
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 14RE: On January 1, 2019, Boater Company issues a 20,000 non-interest-bearing, 5-year note for equipment....
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Becker Motors purchased a custom-made metal press for use in repairing wrecked cars. The press was installed on January 2, 2016. The press had a market value of $320,000. Becker agreed to pay for the press in three equal installments beginning December 31, 2016. At the time, Hornet's incremental borrowing rate was 8%.

Required: Prepare the first two years of the amortization table for the note payable. Prepare the journal entries to record (1) the purchase of the machine, (2) the first annual payment, and (3) the 2 nd annual payment. Round to the nearest dollar

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