On January 1, 2019, Billips Corporation purchased equipment having a fair value of $72,054.94 by issuing a $90,000 note, payable in three $30,000 annual installments beginning December 31, 2019. Required:   Prepare (1) the journal entry to record the purchase of the equipment, (2) a schedule to compute the annual interest expense, and (3) the journal entries to record yearly interest expense and note repayments over the life of the note.

Q: January 1, 2021, Dreamlover Corporation purchased equipment from Daydream Company for P3,600,000.…

A: As per the amortization method, the financial instrument is recognized at present value and interest…

Q: On January 1, 2019, Carson Inc sold used equipment with a cost of S15,000 and a carrying amount of…

A: ANSWER   On January 1, 2019, Carson Inc sold used equipment with a cost of S15,000 and a…

Q: Magenta Company purchased a machine from Pink Corporation on October 31, 2021. In payment for the…

A:

Q: Cardinals Corporation purchased a computer on December 31, 2019, for $105,000, paying $30,000 down…

A: Calculate the present value of future payments as follows:  The present value of future payments is…

Q: n January 1, 2020, Christine Company borrowed P30,000,000 at 12% to finance partly the construction…

A: Interest to be capitalised on Decemeber 31, 2020 = 12% x P30000000  =P 3600000  = P3600000

Q: On August 1, 2019, Pereira Corporation has sold 1,600 Wiglows to Mendez Company at $450 each. Mendez…

A: Unearned warranty revenue on December 31, 2019 = $19,200*5/12…

Q: ACME Inc. issued a 10 year, 5%, $340,000 note payable to finance the construction of a new building…

A: The process of recording business transactions in the books of accounts for the first time is…

Q: On January 1, 2020, Happy Inc. sold a hot tub to Monica, receiving a two-year, noninterest-bearing…

A:

Q: On January 1, 2021, Takemichi Company sold a piece of equipment to Hina Company with a cost of…

A: We know that Interest is calculated on outstanding balance. Interest = Outstanding Balance x Rate of…

Q: Wilkins Food Products Inc. acquired a packaging machine from Lawrence Specialists Corporation.…

A: 1. The following are the accounts, reporting incorrect balance as a result of errors. Interest…

Q: Starting 2019, every sale of the main product of Amongus Company will include a three-year warranty.…

A: Warranty is a kind of contract between the buyer and seller under which seller promises to repair or…

Q: On January 2, 2020, Brook Company acquired machinery by Issuing a 5%, $350,000 note due in 5 years…

A: Current portion of liability means the obligation that an entity would settle within a year and…

Q: Webb Corporation purchased equipment from Shaw Corporation on January 1, 2019. Shaw accepted a…

A: Bonds:   Bonds are long-term promissory notes that are issued by a company while borrowing money…

Q: Sweet Corporation purchased a computer on December 31, 2019, for $140,700, paying $40,200 down and…

A: Here discuss about the purchase of equipment which are first to paid the down payment of certain…

Q: The Richards Company paid for a five-year extended warranty on all of their equipment on March 1,…

A: If any warranty charges has been paid in advance , we need to write that expenditure in proportion…

Q: On January 1, 2020, South Company acquired a building for 5,000,000. The entity paid 500,000 down…

A: January 1st, 2020 Building     Dr.  5000000 Cash                    Cr. 500000 Note payable    Cr.…

Q: On September 1, 2019, Donna Equipment signed a one-year, 8% interest bearing note payable for…

A: Note means an instrument acknowledging as debt due from one party to another party. Interest bearing…

Q: Assuming Valco Brothers Farm fulfills all the terms of the note, prepare the necessary journal…

A: Under Accrual Basis of accounting business transations are recorded as and when they occur. Here…

Q: On January 1, 2019, Tabor Company sold land with a book value of $50,000 to Wilson Company,…

A: Part 1: Present value is calculated for the firm as: Present value=$60,000×0.797(PVT)=$47,820 Tabor…

Q: Lathrop Inc. purchased equipment on January 1, 2020, for $30,000 cash plus a note payable. The fair…

A: Mortgage Note Payable - A mortgage note payable is a written promise to repay a specific amount of…

Q: On January 1, 2021, Tina Bank extended a 5-year, 12%, P5,000,000 loan to Mr. Prospecio. Principal is…

A: Business loans- A business loan, also known as a commercial loan, is a type of financing used to…

Q: Lathrop Inc. purchased equipment on January 1, 2020, for $150,000 cash plus a note payable. The fair…

A: Date  Accounts, explanation and title  Debit  Credit  1 January 2020  Equipment (542,666 -…

Q: On January 1, 2019, South company acquired a building for P5,000,000. South company paid PS00,000…

A: Face value of Note (P5000000 - P500000) P45,00,000 Annual Installment (P4500000 / 3) P15,00,000…

Q: On January 1, 2018, King Inc. borrowed $190,000 and signed a 4-year, note payable with a 10%…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: On January 1, 2019, Aitoes Inc. sold used equipment with a cost of S15,000 and a carrying amount of…

A: Notes receivable is used to track the money to be received from the borrower

Q: On January 1, 2019, Lala Company received an P800,000, 8%, 2 year note from Move Corporation as…

A: Annual installment = Total amount to be collected / no. of installment = 600000/3 = P200,000

Q: oninterest bearing note requiring five annual payments of P500,000. The first payment was made on…

A: A noninterest bearing note is the one that does not carry any interest component but is transacted…

Q: The following events occurred during the year ended 30 June 2020 for Electrical Limited. On 1 June…

A: 1. Interest payable - $48000 x 12 % x 1/12 = $480 Notes payable - $48000   2. Deposit in advance -…

Q: n December 15, 2018, Rigsby Sales Co. sold a tract of land that cost $3,900,000 for $5,000,000.…

A: Computation of gross profit ratio :- Gross profit ratio= (Sales-costs)/ Sales…

Q: LCD Industries purchased a supply of electronic components from Entel Corporation on November 1,…

A: Note payable is a note that is issued by the borrower specifying the terms and conditions pertaining…

Q: At the beginning of 2021, VHF Industries acquired a machine with a fair value of $6,074,700 by…

A: 1.

Q: At the beginning of the year 2019, Trunk Company has an investment property acquired at a cost of…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What amount of interest is capitalized on December 31, 2019? 2. What is the interest expense for…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: On July 1, 2021, Guarin Co. obtained fire insurance for a three-year period at an annual premium of…

A: As per the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…

Q: On January 1, 2021, ABC Company acquired an equipment from DEF Company in lieu of cash payment, ABC…

A: Current and non-current liabilities: The liabilities are classified as current and noncurrent…

Q: The following events occurred during the year ended 30 June 2020 for Electrical Limited. On 1 June…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

Q: On January 1, 2018, King Inc. borrowed $190,000 and signed a 5- year, note payable with a 10%…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: A company acquires assets recorded at $240,000 by paying $120,000 cash and taking on a 12 year…

A: Loan =240000-120000=120000/24=$5000 So instalment $5000 semi annual…

Q: LCD Industries purchased a supply of electronic components from Entel Corporation on November 1,…

A: Purchase Price : $24 Million Period : 12 Months Monthly Interest Rate : 12% / 12 = 1% Annuity rate…

Q: Straight Industries purchased a large piece of equipment from Curvy Company on January 1, 2019.…

A: Interest accrued for 2019 = Present value of note x rate of interest x no. of years = $252715 x 10%…

Q: On January 1, 2021, ABC Company acquired an equipment from DEF Company in lieu of cash payment, ABC…

A: Introduction

Q: Black Widow Company borrowed P15,000,000 at 12% to finance in part the construction of a new…

A: Answer Calculation of amount of interest to be capitalized Average expenditures on warehouse =…

Q: On April 1, 2019, Flamengo Co. signed a one-year, 8% interest-bearing note payable for $50,000.…

A: Since you have asked multiple questions we will solve the first question for you as per the policy.…

Q: Carla Vista Company purchased equipment on account on September 3, 2019, at an invoice price of…

A: Calculate the cost of equipment.

Q: On January 1, 2020 SANA ALL MAHAL Co. acquired land by issuing a three-year, 12%, P4,000,000 note…

A: Working note: Computation of carrying amount of notes payable on January 1, 2021:

Q: Anxious Company acquired two items of machinery. On December 31, 2020, Anxious Company purchased a…

A: Note means an instrument issued by company acknowledging the debt due from company to bond holder.…

Q: LCD Industries purchased a supply of electronic components from Entel Corporation on November 1,…

A: Installment note:   Installment note is an obligation in which the defaulter needs to repay the…

Q: On January 1, 2021, ABC Company acquired an equipment from DEF Company in lieu of cash payment, ABC…

A: Interest expense is the amount which is paid along with the principal amount of a debt security like…

Q: At the beginning of the year 2019, Trunk Company has an investment property acquired at a cost of…

A: Investment is the activity where the investors invest money with the intention of making a profit…

Q: On January 2, 2019, Grey Company received an P800,000, 8%, 2 year note from Black Corporation as…

A: Impairment loss is the excess of carrying amount over the recoverable amount of the notes…