On December 31, 2020, Larkspur Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Larkspur Co. agreed to accept a $ 252,100 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Larkspur is much more creditworthy and has various lines of credit at 6%. Click here to view factor table. (a) Prepare the journal entry to record the transaction of December 31, 2020, for the Larkspur Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5.275. If no entry is required, select "No Entry" for

On December 31, 2020, Larkspur Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Larkspur Co. agreed to accept a $ 252,100 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Larkspur is much more creditworthy and has various lines of credit at 6%. Click here to view factor table. (a) Prepare the journal entry to record the transaction of December 31, 2020, for the Larkspur Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5.275. If no entry is required, select "No Entry" for

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 30E

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On December 31, 2020, Larkspur Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Larkspur Co. agreed to accept a $ 252,100 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Larkspur is much more creditworthy and has various lines of credit at 6%.Click here to view factor table.
On December 31, 2020, Whispering Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Whispering Co. agreed to accept a $318,100 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Whispering is much more creditworthy and has various lines of credit at 5%. (a) Prepare the journal entry to record the transaction of December 31, 2020, for the Whispering Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
On December 31, 2020, Whispering Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Whispering Co. agreed to accept a $318,100 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Whispering is much more creditworthy and has various lines of credit at 5%. Prepare the journal entry to record the transaction of December 31, 2020, for the Whispering Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Notes Receiveables 318100 Discount on Notes Receiveable 59924…
On December 31, 2020, Ed Abbey Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Abbey Co. agreed to accept a $200,000 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Abbey is much more creditworthy and has various lines of credit at 6%. For step 1, why is it worked out 1/1.1 and answer divided by 1.1 to get 0.826446? Can you explain it to me step by step please. It is PV at 10% for end of year 2. I am having trouble understanding the process. Can you please explain it to me?
By December 31, 2017, Culver Corporation had performed a significant amount of environmental consulting services for Sunland Company. Sunland Company was short of cash, and Culver Corporation agreed to accept a $182,000, non–interest-bearing note due December 31, 2019, as payment in full. Sunland Company is a bit of a credit risk and typically borrows funds at a rate of 12%. Culver Corporation is much more creditworthy and has various lines of credit at 8%. Culver Corporation reports under IFRS. The tables in this problem are to be used as a reference for this problem. Prepare the journal entry to record the transaction on December 31, 2017, for Culver Corporation. Assuming Culver Corporation’s fiscal year end is December 31, prepare the journal entry required at December 31, 2018. Assuming Culver Corporation’s fiscal year end is December 31, prepare the journal entry required at December 31, 2019. What are the amount and classification of the note on Culver Corporation’s statement of…
By December 31, 2017, Culver Corporation had performed a significant amount of environmental consulting services for Sunland Company. Sunland Company was short of cash, and Culver Corporation agreed to accept a $182,000, non–interest-bearing note due December 31, 2019, as payment in full. Sunland Company is a bit of a credit risk and typically borrows funds at a rate of 12%. Culver Corporation is much more creditworthy and has various lines of credit at 8%. Culver Corporation reports under IFRS. The tables in this problem are to be used as a reference for this problem. Prepare the journal entry to record the transaction on December 31, 2017, for Culver Corporation. Assuming Culver Corporation’s fiscal year end is December 31, prepare the journal entry required at December 31, 2018.