Sage Hill Corporation purchased a truck by issuing an $78,600, four-year, non-interest-bearing note to Equinox Inc. The marketinterest rate for obligations of this nature is 12%.Click here to view Table A.2- PRESENT VALUE OF 1Calculate the purchase price using any of the three methods (tables, financial calculator, or Excel). (Round factor values to 5 decimalplaces, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275.)Purchase price $Prepare the journal entry to record the truck purchase. (Credit account titles are automatically indented when the amount is entered. Donot indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before creditentry.)Account Titles and ExplanationTruck49,952Note ReceivableDebit78,600Credit78,600

The journal entry is the format under which the business entity identifies, evaluates, and analyses…

Sage Hill Corporation purchased a truck by issuing an $78,600, four-year, non-interest-bearing note to Equinox Inc. The market interest rate for obligations of this nature is 12%. Click here to view Table A.2- PRESENT VALUE OF 1 Calculate the purchase price using any of the three methods (tables, financial calculator, or Excel). (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.) Purchase price $ Prepare the journal entry to record the truck purchase. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Account Titles and Explanation Truck 49,952 Note Receivable Debit 78,600 Credit 78,600

Sage Hill Corporation purchased a truck by issuing an $78,600, four-year, non-interest-bearing note to Equinox Inc. The market interest rate for obligations of this nature is 12%. Click here to view Table A.2- PRESENT VALUE OF 1 Calculate the purchase price using any of the three methods (tables, financial calculator, or Excel). (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.) Purchase price $ Prepare the journal entry to record the truck purchase. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Account Titles and Explanation Truck 49,952 Note Receivable Debit 78,600 Credit 78,600

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A property was purchased for $7260.00 down and payments of $1322.00 at the end of every three months for 4 years. Interest is 3% per annum compounded monthly. What was the purchase price of the property? How much is the cost of financing? The purchase price of the property was $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) The cost of financing is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Bank Sohar provides a financing facility based on murabahah to the Purchase Orderer principles to Ahmad for the purpose of house purchase. The financing is amounting to OR 131000 at a constant rate of return 4 % for a period of 9 years. At year 0 the unearned income would be credit by:
For items 1-10, refer to the following: The owner of Dawn Winery decided to lend kegs of wine amounting to 5 50,000 to a certain bard who agreed to pay it within 7 years. Oint Compute for rate 0) of interest for each conversion period tirst) Solve for the interest rate if it accumulated a total of 5 65,154.90 compounded quartarly
Otto Company borrows money on January 1 and promises to pay it back in four semiannual payments of $17,000 each on June 30 and December 31 of both this year and next year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) 1. How much money is Otto able to borrow if the interest rate is 2%, compounded semiannually? 2. How much money is Otto able to borrow if the interest rate is 6%, compounded semiannually? 3. How much money is Otto able to borrow if the interest rate is 8%, compounded semiannually? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much money is Otto able to borrow if the interest rate is 2%, compounded semiannually? Periodic Cash Flow Table Factor Present Value
eztő.mneducation.com/ext/map/index.html?_con3con&external_browser%30& Urn%=https%253A%252F lackboard.Wa Earl Miller deposited $25,000 at Y Bank at an interest rate of 12% compounded quarterly. (Use the tables in the handbook.) The effective rate (APY) is: (round to the nearest hundredth percent, if applicable) Multiple Choice None of these 12.55% 12.15% O 12% 13.2% i 7:15 M
On February 25, 2014, Holden Corp. purchased automobiles and trucks for a total price of $530,000, by borrowing the full balance from the bank to be repaid within 8 years. The bank appraised the automobiles at S196,000 and the trucks at $294,000. Enter an appropriate description, and enter the date in the format dd/mmm (i.e., 15/Jan). General Journal Page GJ2 F Debit Credit Date Account/Explanation
Givens, Hong, and Partners obtained a $8,100 term loan at 9.6% compounded annually for new boardroom furniture. Prepare a complete amortization schedule in which the loan is repaid by equal semiannual payments over three years. (Round your answers to the nearest cent. Do not round the intermediate calculations.) Payment Interest number Payment $ portion $ 0 DLN3 456 1 2 1624.80 1624.80 1624.80 1624.80 1624.80 1624.80 Principal portion $ Principal balance $ 8,100.00
Island News purchased a piece of property for $1.46 million. The firm paid a down payment of 20 percent in cash and financed the balance. The loan terms require monthly payments for 20 years at an APR of 4.33 percent, compounded monthly. What is the amount of each mortgage payment? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Note: You may use Excel or Google Sheets to solve this problem (highly recommended).
please answer both subparts
On January 1 of this year, Skamania Company completed the following transactions (assume a 8% annual interest rate): (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use the appropriate factor(s) from the tables provided. a. Bought a delivery truck and agreed to pay $60,200 at the end of three years. b. Rented an office building and was given the option of paying $10,200 at the end of each of the next three years or paying $28,200 immediately. c. Established a savings account by depositing a single amount that will increase to $90,400 at the end of seven years. d. Decided to deposit a single sum in the bank that will provide 8 equal annual year-end payments of $40,200 to a retired employee (payments starting December 31 of this year). Required: a. What is the cost of the truck that should be recorded at the time of purchase? b. Which option for the office building results in the lowest present value? c. What single amount must be deposited in this account on January 1 of this year?…
Bank A makes a loan of $10,000 to Company B at a 10% interest rate. Which of the following is the correct journal entry for Bank A the day the loan is made? Group of answer choices Option A.)Dr. Cash (+A) $10,000 Cr. Notes Payable (+L) $10,000 Option B) Cr. Notes Payable (+L) $10,000 Dr. Cash (+A) $10,000 Option C) Dr. Notes Receivable (+A) $10,000 Cr. Cash (-A) $10,000 Option D) Dr. Notes Receivable (+A) $11,000 Cr. Cash (-A) $11,000 ANSWER BEFORE 11:30!!
Assuming loan made by M Enterprises to Banco De Oro amounting to P350,000.00 payable in three years with monthly interest of 1.05%. M enterprises issued 12 checks for 1 year and upon 3rd month, issued check was bounced. What could be the possible action of the drawee? Elaborate your answer with supporting data.