Martinez Corporation tractor on December purchased a special 31, 2020. The stipulated that purchase agreement Martinez should pay $21,540 at the end of each of the next 8 years. The tractor should be recorded on December 31, 2020, at what amount, assuming an appropriate interest rate of 12%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Cost of tractor to be recorded $

Martinez Corporation tractor on December purchased a special 31, 2020. The stipulated that purchase agreement Martinez should pay $21,540 at the end of each of the next 8 years. The tractor should be recorded on December 31, 2020, at what amount, assuming an appropriate interest rate of 12%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Cost of tractor to be recorded $

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 12E: On October 1, 2019, Ball Company issued 9% bonds dated October 1, 2019, with a face amount of...

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On August 1, 2019, Kern Company leased a machine to Day Company for a 6-year period requiring payments of 10,000 at the beginning of each year. The machine cost 40,000 and has a useful life of 8 years with no residual value. Kerns implicit interest rate is 10%, and present value factors are as follows: Present value for an annuity due of 1 at 10% for 6 periods4.791 Present value for an annuity due of 1 at 10% for 8 periods5.868 Kern appropriately recorded the lease as a sales-type lease. At the inception of the lease, the Lease Receivable account balance should be: a. 60,000 b. 58,680 c. 48,000 d. 47,910
Blue Corporation purchased a special tractor on December 31, 2020. The purchase agreement stipulated that Blue should pay $21,390 at the time of purchase and $ 4,780 at the end of each of the next 8 years. The tractor should be recorded on December 31, 2020, at what amount, assuming an appropriate interest rate of 12%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
On January 1, 2022, ABC Company buys three hectares of land for exactly P800,000 with the amount to be paid on December 31, 2024. Interest of 3% will be paid each December 31 although a 10 percent annual rate is viewed as reasonable. Use PV factors rounded to TWO decimal places.On December 31, 2022, at what amount should the company report as the liability for this land? On December 31, 2022, what amount of Discount on Notes Payable should be reported by ABC Company on its Statement of Financial Position? Prepare the journal entry on the payment of interest expense on December 31, 2022.
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On June 30, 2021, ABC Corp. purchased a P3,000,000 face valuebonds with P2,925,067.05 cash. The interest rate is 10%, payablesemiannually every June 30 and Dec. 31. The remaining term as ofacquisition date is three years. ABC purchased it for bothcontractual cashflows and trading purpose, and hence initiallydesignated it as FA‐FV‐OCI. The effective interest rate is 11%. Withinthe year 2022, there was a change in the purpose of holding theinvestment to maturity. As of the end of the years 2022 and 2023,the bonds were valued at P2,950,000 and P2,975,000 respectively.1. What is the compound journal entry to record thereclassification and update the related accounts? Includethe date and explanation.
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On January 1, 2021, ABC Company sold machinery with carrying amount of P550,000 for P800,000, which is the fair value of the asset on this date, and then immediately leased the machine back for P160,000 annually payable in advance for five years. The implicit rate is 12%. Using four decimal places as PV factors, which of the following will be part of the compound journal entry ABC Company will prepare on January 1, 2021? A. Debit Cash, P800,000 B. Credit Lease liability, P645,968 C. Credit Gain on Sale-Leaseback, P48,315 D. Debit Right-of-Use Machinery, P444,103
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On January 1, 2021, Dreamlover Corporation purchased equipment from Daydream Company for P3,600,000. Term of payments includes issuing a 5-year noninterest-bearing note payable equally every end of the year. The effective interest rate is 15%. The entity used 2 decimal places for the PVF. Requirements: How much is the initial cost of the equipment?
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