Garcia Corporation purchased a truck by issuing an $80,000, 4-year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 10%. Prepare the journal entry to record the purchase of this truck.

Q: On January 1, 2019, Carson Inc sold used equipment with a cost of S15,000 and a carrying amount of…

A: ANSWER   On January 1, 2019, Carson Inc sold used equipment with a cost of S15,000 and a…

Q: Korean Short Ribs Company sold a tract of land with carrying amount of P3,000,000 to Instant Pot…

A: Formula: Notes receivable amount = Principal amount - Interest with installment amount.

Q: On January 2, 2009, Blake Co. sold a used machine to Cooper Inc. for P900,000 resulting to a gain of…

A: Sales revenue is the proceeds that is received from delivering goods and services. Sometimes, amount…

Q: January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at…

A: Initial amount of the note receivable = Down payment (If any)+Present value of face amount + Present…

Q: Wildhorse Corporation purchased a truck by issuing an $113,600, 4-year, zero-interest-bearing note…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: On January 1, 2019, A Company purchased equipment. There was no established market price for the…

A: Interest expense is a non operating expense shown on the income statement. It represents interest…

Q: On January 1, 2021, Lorry Manufacturing Company purchased equipment from Wales Inc. There was no…

A: Lets understand the basics. When asset is purchased using zero interest bearing notes payable then…

Q: Peabody Corporation purchased equipment and in exchange signed a three-year promissory note.The note…

A:

Q: On January 1, 2021, Suga Company sold an equipment to Jin Company which had a carrying value on…

A: Present value of note on January 1, 2021 = Face value of note x PV of an ordinary annuity of P1…

Q: Bob the Builder purchases a piece of equipment on July 1, Year 5. The equipment has 5-year useful…

A: Statement for Calculation of Initial Cost to be Recognized Year  Cash Flow PV Factor @4% PV  0…

Q: On January 1, 2021, Bambam Company sold an equipment to Lucas Company which had a carrying value on…

A: A note receivable is an asset account linked to an underlying promissory note that specifies in…

Q: On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at…

A: There would be two types of income for the year 200A: The first one is Gain on sale of equipment And…

Q: On July 1, 2020, Splish Inc. made two sales. 1.   It sold land having a fair value of $909,120 in…

A: Journal Entry is the entry made to record the transactions which have occurred in the books of…

Q: American Food Services, Inc., acquired a packaging machine from Barton and Barton Corporation.…

A: Answer 1:

Q: n interest rate of 8% and is to be repaid in three annual installments of P200,000 plus interest on…

A: From the given values, the interest revenue as,

Q: On December 31, 2009, Mill Co. sold construction equipment to Drew, Inc. for P1,800,00. The…

A: Correct answer is P 250,000   Total amount of revenue should mill recognise from the construction…

Q: On July 31, 2020, Marin Company engaged Minsk Tooling Company to construct a special-purpose piece…

A: Solution:- a) Calculation of the interest revenue as follows:-

Q: Lathrop Inc. purchased equipment on January 1, 2020, for $150,000 cash plus a note payable. The fair…

A: Date  Accounts, explanation and title  Debit  Credit  1 January 2020  Equipment (542,666 -…

Q: Kervin Company acquired three items of machinery as follows: During 2021, the entity purchased a…

A: Cost refers to the amount at which the goods are exchanged and purchased in the market by the…

Q: Korean Short Ribs Company sold a tract of land with carrying amount of P3,000,000 to Instant Pot…

A: Formula: Notes receivable amount = Principal amount - Installment amount with interest

Q: The initial amount of the note receivable is (Round off the resulting present value of the note to…

A: The initial amount of notes receivable is calculated as present value of the installment payment.…

Q: On June 1, 2021, Blossom & Sons sold equipment to James Landscaping Service in exchange for a…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: On January 1, 20x1, DEF Company purchased a machine for ₱300,000 in exchange for a note. The…

A: IAS 16 Property, plant and equipment provides guidance on the accounting of fixed assets. Initially,…

Q: On January 1, 2019, Aitoes Inc. sold used equipment with a cost of S15,000 and a carrying amount of…

A: Notes receivable is used to track the money to be received from the borrower

Q: On January 1, 2021, Suga Company sold an equipment to Jin Company which had a carrying value on…

A: Present value of note on January 1, 2021 = Face value of note x PV of an ordinary annuity of P1…

Q: Explosib, Inc. acquired two units of equipment on December 31, 2021. The first equipment was…

A: When equipment are purchased for credit, the cost to be capitalized is to be based on present value…

Q: On June 30, 2018, Kimberly Farms purchased custom-made harvesting equipment from a local producer.…

A:

Q: On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at…

A: The promissory notes also known as the notes receivables are the fixed documents which shows the…

Q: Roberts Corporation purchased some equipment by issuing a $20,000 non-interest-bearing, four-year…

A: Formula: Present value of Asset = Bond value x PV factor Multiplying Bond value with PV factor…

Q: On July 31, 2020, Marin Company engaged Minsk Tooling Company to construct a special-purpose piece…

A: Journal entries are posting of transactions in the books of company and then it is analysed as well…

Q: LCD Industries purchased a supply of electronic components from Entel Corporation on November 1,…

A: Note payable is a note that is issued by the borrower specifying the terms and conditions pertaining…

Q: On January 1, 20x9, Fairness Company sold a tract of land that was acquired years ago for P…

A:

Q: On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at…

A: The current portion of note receivable is the part which is due within 1 year. In this case, as on…

Q: On January 2, 2009, Easy Pay Co. sold a plant to Menchie Co. for P1,500,000. On that date, the…

A: Sales Price of Plant=P1,500,000 Cost or carrying value=P1,000,000 Gross Profit=P500,000 Sales…

Q: On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at…

A: Particulars  Amount (P) Sales 800000 Less: down payment  (100000) Less : installment of…

Q: it was wrong i need help

A: Step 1:

Q: Korean Short Ribs Company sold a tract of land with carrying amount of P3,000,000 to Instant Pot…

A: Formula: Notes receivable amount = Principal amount - Interest amount with installment

Q: Hemingway Company purchases equipment by issuing a 7-year, $210,000 non-interest-bearing note, when…

A: Companies acquire assets either through cash or non-cash means. In the case of non-cash means,…

Q: On January 1, 2018, Sana Madali Lang Company sold machinery costing P5,000,000 with accumulated…

A: The notes receivable is an account in the balance sheet of an organization generally under the…

Q: On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at…

A: Notes receivables are the promissory notes which works as a legal document for repaying the money…

Q: January 1, 2019, Worthylake Company sold used machinery to Brown Company, accepting a $25,000,…

A: As per IFRS 16 Property plant and equipment Sale value of machine is the Present value of Note…

Q: Korean Short Ribs Company sold a tract of land with carrying amount of P3,000,000 to Instant Pot…

A: Current assets are the assets that are usable for a short period of time generally for a year or…

Q: On January 1, 2021, Hornets Company sold land that originally cost P400,000 to Egi Company. As…

A: Stated rate of interest & market rate of interest rate are same. Therefore Interest revenue for…

Q: Anxious Company acquired two items of machinery as follows: On December 31, 2019, Anxious company…

A: All amounts are in (P).

Q: On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at…

A: Note receivable is the instrument that gives a right to the holder of the instrument the right to…

Q: On January 1, 20x9, Fairness Company sold a tract of land that was acquired years ago for P…

A: * As per Bartleby policy, answer first three subparts only in case question contains multiple…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.