6. Answer what is required of the problem. On January 1, 2021, North Company acquired a machinerywith cash price of P750,000 for P1,000,000.The entity paid P200,000 and signed a noninterest bearingpromissory note for the balance which is payable in 4 equalinstallments every December 31 of each year.Required:Prepare journal entries for 2021.

Accounts Payable: Accounts payable is recognized in the accounting books of a company to indicate…

Answered: orth Company ,000 for P1,000,00 00 and…

Business

Accounting

orth Company ,000 for P1,000,00 00 and signed a r :eh is

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

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 23P: Notes Receivable On January 1, 2019, Lisa Company sold machinery with a book value of 118,000 to...

See similar textbooks

Related questions

Q: Franco converted a building from personal to business use in May 2018 when the fair market value was…

A: Solution:- Given, Franco converted a building from personal to business use in May 2018 The fair…

Q: On January 1, 2021, Mintal Company, an SME, purchased 10,000 shares of Los Amigos Company P100 par…

Q: in valu ought it nomina

A: Given: Particulars Amount Invested $5,000 Year 20 Mortgage $10,000 Interest rate…

Q: You borrow money on a self liquidating installment loan (equal payments at the end of each year,…

A: Instalment Loan: Installation loans are a sort of agreement or contract in which a loan is provided…

Q: Sheridan Corporation wishes to exchange a machine used in its operations. Sheridan has received the…

A: Journal entries are the first step in the recording process. If asset is sold at a value lower than…

Q: At December 31, 2022, the trial balance of Skysong Company contained the following amounts before…

A: Allowance Method - Under Allowance method provision needs to be made on the basis of uncollectible…

Q: Common Stockholders' Profitability Analysis A company reports the following: Net income $125,000…

A: The return on common equity ratio compares the amount of money received by common shareholders from…

Q: The following list gives a number of measures associated with the Balanced Scorecard:a. Number of…

A: Balance-scorecard is a strategic vision to measure the performance and in evaluating various…

Q: Only answer part D and part E

A: Income Statement Revenue Sales Revenue 68500 Less: Sales Return and Allowance -250…

Q: Requirement: Prepare adjusting entries

A: Adjusting Entries are the journal entries made at the end of the accounting period after the Trial…

Q: Leach Inc. experienced the following events for the first two years of its operations: Year…

A: Financial Statements - Financial Statements includes income Statement, Statement of Stockholder's…

Q: $fill in the blank 2 Should Petoskey keep or drop Conway?

A: Introduction: The contribution margin can be expressed as a percentage of the total or as a…

Q: Problem 3 - Determine the maturity date and interest for a notes receivable |Amplify Bank…

A: let's understand some some basics Notes receivable are written promissory notes that give the…

Q: ne had an original co lease was 15%. Th nts of P1,750,000 are achine reverts to Le

A: 1. Net lease receivable by lessor = Present value with interest 15% = P 60,00,000 Workings…

Q: Beta Ltd manufactures laptops. Cellar Ltd routinely buys laptops from Beta Ltd. On 1 June 2021, Beta…

A: journal entry is the first step that is considered by the business when they sell they are good…

Q: This year, Lambert Company will ship 1,500,000 pounds of goods to customers ata cost of $1,200,000.…

A: Answer) Calculation of Shipping Cost Assigned to the customer Shipping Cost Assigned to the customer…

Q: At the beginning of Year 2. ABC Company had $100.000 of Goodwill on its Balance Sheet. During Year…

A: Introduction:- Goodwill arises when a company acquires another entire business. Goodwill is…

Q: Convert the cash flow shown in figure B to a future amount at t=7 when i=2%. a. $1110 $370 $370 $370…

A: To convert these cash inflows and outflows, we need to multiply the amount of cash inflows and…

Q: A primary objective of international financial accounting standards is to equip a company with…

A: Accounting standards refers to the set of rules, principles or the standards which are used for…

Q: A company currently in the 3rd month of a 2 year project. The financial committee would like to have…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: -ughout the year vertible into 20 million shares of c e into 18.0 million shares of comn

A: Given as,

Q: On January 1, 2022, Frank Co. and Richard, Inc. combined. As of this date, the fair values of

A: Richard acquired 60% of Frank. So now Frank is subsidiary of Richard…

Q: Allison is 29 years old and plans to retire at age 65 with $1,470,000 in her retirement account.…

A: Present Value- Present value is the conception that states a total of money today is value more than…

Q: Three different lease transactions are presented below for Carla Vista Enterprises. Assume that all…

A: An asset under the lease is to be classified as a capital lease if any one of four conditions must…

Q: It is the end of the year, and I am completing my Accrual Income Statement. During the year I went…

A: Accrual accounting means revenue and expenses are recognized and recorded when they occur.

Q: Hussain Company is unable to reconcile the bank balance at January 31. Hussain's reconciliation is…

A: Bank reconciliation statement is prepared by the management at a particular time period. It helps to…

Q: Ann and Tom want to establish a fund for their grandson's college education. What lump sum must…

A: PV termed as Present value which is current or the present amount of money which is deposited in…

Q: DZL. 7-2 Project: Company Accour X D21. 7-1 Problem Set: Module Sev X CengageNOWv2 | Online tea x…

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: On February 1, Windsor Company purchased 1,300 shares (2% 8whership) March 20, Windsor Company sold…

A: The journal entries are prepared to record day to day transactions of the business on regular basis.…

Q: a. Show the accounting entries that you would make to record depreciation on tractors of R20 000,…

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

Q: Common Stockholders' Profitability Analysis A company reports the following: Net income $125,000…

A: Equity- Equity represents the worth that would be returned to a corporation's investors if all of…

Q: Brian Company provided the following selected account balances on December 31. 2021 Cash P60,000…

A: The accounting equation states that assets equals to sum of liabilities and shareholders equity. The…

Q: QUESTION 2 Gary inherited a Maine summer cabin on 10 acres from his grandmother. His grandparents…

A: Comment- We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Beagle Corporation has 28,000 shares of $10 par common stock outstanding and 15,000 shares of $100…

A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…

Q: and B form a partnership on January 1 of Year 1. Each makes a cash contribution to the partnership…

A: a. Under section704(a) allows the partners how to allocate income gains, losses and deductions . The…

Q: (1) a posting to a general ledger account. (2) a posting to a subsidiary ledger account. (3) that no…

A: GIVEN Shown below is a page from cash payments journal. Using the cash payments journal below,…

Q: How much is the impairment loss to be recorded on December 31, 2022? How much is the carrying…

A: Loan on 01.01.2020 12000000 Term of Loan-Principal Payment Annually 2000000 Interest @6%…

Q: On January 1, 2022 Hideki Matsuyama provides services in exchange for a $10,000 zero-interest…

A: Solution: Present value of note on Jan 1, 2022 = $10,000 * PV of 1 at 15% for 4 periods = $10,000 *…

Q: During 2019, Latte Inc., spent P5,000,000 developing its new "Hyperion" software package. Of this…

A: The question is related to Accounting for Intangible Assets. In developing an Intangible Assets…

Q: s Priv rnme

A: Introduction We are going to solve this question providing appropriate answer using definition of…

Q: According to financial analysts, accounting profits are a misleading indicator of a sports team's…

A: Accounting profit refers to the net income which is computed by subtracting the amount of expenses…

Q: Unit 1 question 14

A: Sales Journal record all transaction of sales on credit Purchase Journal records all transaction of…

Q: Exercise 13-33 (Algo) Estimate Purchases and Cash Disbursements (LO 13-4, 5) Lakeside Components…

A: Calculation of estimated purchase in units and cash required are as follows.

Q: following items are reported on a company's balance sheet: $365,600 rketable securities 285,700…

A: The current ratio is a liquidity ratio that evaluates a company's ability to pay one-year or…

Q: Which machine would you recommend given the following information and interest rate is 10%? New Used…

A: The question is based on the concept of Cost Accounting.

Q: ue added, several adjustments are made to after tax operating profit that

A: Economic value added = net operating profit after tax -(capital*WACC)

Q: On January 1 , 2021, Gray Co. issued its 10%, 4-year convertible debt instrument with a face amount…

A: Above question is based on Compounded Financial Instrument. In these type of instrument, two…

Q: Ben & Ben Music Company carries a wide variety of musical instruments, sound reproduction equipment,…

A: Solution; 1) WARRANTY EXPENSE: Warranty expense (sales) = 5,400,000 Estimated warranty cost = 2%…

Q: Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after…

A: Adjustment entries are those that are made after the trial balance is made by taking balances from…

Q: Thelma and Louise, Inc. (TAL) is suffering from the effects of increased local and global…

A: The question is related to Cost Volume Profit Analysis. The details are given.

Question

6. Answer what is required of the problem.

On January 1, 2021, North Company acquired a machinery
with cash price of P750,000 for P1,000,000.
The entity paid P200,000 and signed a noninterest bearing
promissory note for the balance which is payable in 4 equal
installments every December 31 of each year.
Required:
Prepare journal entries for 2021.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9% U.S. Treasury notes for 194,000. The notes mature July 1, 2020, and pay interest semiannually on January 1 and July 1. The notes were sold on December 1, 2019, for 199,000. Aldrich normally uses straight-line amortization on all of its notes. In its income statement for the year ended December 31, 2019, what amount should Aldrich report as a gain on the sale of the available-for-sale security? a. 2,500 b. 3,500 c. 5,000 d. 6,000
On January 1, 2019, Boater Company issues a 20,000 non-interest-bearing, 5-year note for equipment. Neither the fair value of the note nor the equipment is determinable. Boaters incremental borrowing rate is 9%. The asset has a useful life of 7 years. Prepare the journal entry for Boater to record the issuance of the note on January 1.
Notes Receivable On January 1, 2019, Lisa Company sold machinery with a book value of 118,000 to Mark Company. Mark signed a 180,000 non-interest-bearing note, payable in three 60,000 annual installments on December 31, 2019, 2020, and 2021. The fair value of the machinery was 149,211.12 on the date of sale. The machinery had been purchased by Lisa at a cost of 160,000. Required: 1. Prepare all the journal entries on Lisas books for January 1, 2019, through December 31, 2021. 2. Prepare the notes receivable portion of Lisas balance sheet on December 31, 2019 and 2020.
On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major customer in exchange for used equipment. The equipment had originally cost Park 200,000 and had a book value of 20,000 on the date of the sale. At the 12% imputed interest rate for this type of loan, the present value of the note is 25,500 on January 1, 2019. Park uses the effective interest rate. What is the carrying value of the note receivable on Parks December 31, 2019, balance sheet? a. 28,560 b. 29,000 c. 32,500 d. 36,000
Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele paid shipping of $1,200, paid installation fees of $2,750, pays annual maintenance cost of $250, and received a 10% discount on sales price. Determine the acquisition cost of the equipment.
Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January 1, 2019. In addition, Spath agrees to sell inventory to the customer at reduced prices over a 5-year period. Spaths incremental borrowing rate is 12%. The customer agrees to purchase an equal amount of inventory each year over the 5-year period so that a straight-line method of revenue recognition is appropriate. Required: Prepare the journal entries on Spaths books for 2019 and 2020. (Round answers to 2 decimal places.)