On January 1, 2019, Aitoes Inc. sold used equipment with a cost of S15,000 and a carrying amount of $2,500 to Disc Corp. in exchange for a $5,000, three-year non interest-bearing note receivable. Aitoes Inc. typically borrows funds at a rate of 10%, while Disc Corp. has various lines of credit at 9%. Assume that Aitoes follows IFRS. Required: Prepare all journal entries related to the transaction in 2019, 2020, and 2021 for Aitoes Inc. (Show your calcuations) Please type your answers in the box below.
On January 1, 2019, Aitoes Inc. sold used equipment with a cost of S15,000 and a carrying amount of $2,500 to Disc Corp. in exchange for a $5,000, three-year non interest-bearing note receivable. Aitoes Inc. typically borrows funds at a rate of 10%, while Disc Corp. has various lines of credit at 9%. Assume that Aitoes follows IFRS. Required: Prepare all journal entries related to the transaction in 2019, 2020, and 2021 for Aitoes Inc. (Show your calcuations) Please type your answers in the box below.
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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