Equipment with a book value of $70,000 and a fair value of $100,000 was sold at the beginning of the year. A 2-year, non-interest-bearing note for $129,960 was received and recorded at its face value, and a gain of $59,960 was recognized. No interest revenue was recorded and 14% is a fair rate of interest. What is the the correcting journal entry or entries required at the beginning of the year for each of the precedingthis error, assuming the company discovers the error in the year after it was made. Ignore income taxes.

Q: On July 8, Jones Inc. issued an $66,900, 9%, 120-day note payable to Miller Company. Assume that the…

A: Interest Expense: The cost of debt which is incurred during a particular accounting period is called…

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Q: On March 1, 2021, Special Company paid P500,000 for the calendar year's property taxes. Advertising…

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Q: Ivanhoe Company owes $179,000 plus $15,800 of accrued interest to Shamrock State Bank. The debt is a…

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Q: On June 1, Davis Inc. issued an $81,200, 8%, 120-day note payable to Garcia Company Assume that the…

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Q: Lathrop Inc. purchased equipment on January 1, 2020, for $30,000 cash plus a note payable. The fair…

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Q: On February 1, 2018, Innovation Company purchased a patent for $72,000 cash. Although the patent…

A:

Q: The following accounts are extracted from the worksheet of X Company on December 31, 2020: Income…

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Q: On January 1, 20x1, HYBE acquired a machine by using a 3%, P4,000,000 note due on January 1, 20x4.…

A: Given; i = 12% / 2    =6% n= 3 x 2   = 6 Note value = $4,000,000

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Q: A company purchases equipment with a $20,000 note payable. The note is to be paid in $5,000 annual…

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A: Here in this question, we are required to pass journal entry for the depreciation and interest…

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Q: On July 8, Jones Inc. issued an $84,700, 11%, 120-day note payable to Miller Company. Assume that…

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Q: On June 1, Davis Inc. issued an $84,000, 5%, 120-day note payable to Garcia Company. Assume that the…

A: Answer: The exact answer is $1,061 . So the nearest option to $1,061 is option D - $1,050 .

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Q: On June 1, Davis Inc. issued an $84,000, 5%, 120-day note payable to Garcia Company. Assume that the…

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Q: At the beginning of the year, Lambert Motors issued the three notes described below. Interest is…

A:

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Q: 1. What amount should be reported as gain or loss on the sale of equipment in 2020?

A: Hey there since you have posted multiple questions, we can answer only first  questions, please…

Q: The following accounts are extracted from the worksheet of X Company on December 31, 2020: Income…

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Q: Your examination of the 2020 entries in the accounts uncovered the following: a. An expenditure of…

A: All items of income and expenditure needs to be adjusted while preparing final accounts if the same…