On October 1, Bandor Company sold land (that cost $30,000) on credit for $35,000. The buyer issued an 8%, 12-month note for this amount, with the interest to be paid on the maturity date. Required:   Prepare journal entries to record the sale of the land and the related year-end adjusting entry

Q: On June 25, Ritts Roofing extended an offer of $250,000 for land that had been priced for sale at…

A: Cost principle: This is an accounting principle which states that the actual cost paid in receipt of…

Q: On January 1, 20x1, RELISH TASTE Co. acquired a machine by issuing a 3%, P4,000,000 note due on…

A: Semi annual interest payment= P 4000000*3%*1/2= P 60000

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

A:

Q: At the beginning of the year, Lambert Motors issued the three notes described below. Interest is…

A: 1. Record journal entries for exchange of land with note payable as shown below:

Q: Which of the following events would be recognized and recorded in Trattoria Company’s accounting…

A: In our accounting system, we follow the accrual basis of accounting. Accrual basis of accounting is…

Q: On June 30, Collins Management Company purchased land for $720,000 and a building for $1,080,000,…

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

Q: Milan Company, a manufacturer of heavy machinery, grants a four-year warranty on its products. The…

A: Warranty indicates the obligation of the company related to the product sold where they have to bear…

Q: of Gilbert, Marsh, & Kester prepares adjusting entries on a monthly basis. Among the items requiring…

A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…

Q: Vera Company purchased a truck from Leen Corp. by issuing a 6-month, 8% note payable for $112,500 on…

A: Journal entry            Date…

Q: Marigold Cosmetics Co. purchased machinery on December 31, 2019, paying $53,800 down and agreeing to…

A: Given information, Marigold purchased Machinery on Dec. 31, 2019 Down Payment = $ 53,800 Balance…

Q: On January 1, Fey Properties paid $18,900 for a three-year insurance premium, with coverage…

A: The insurance expense for the month            of  January 31 is as  follows  =   3 × (12…

Q: On August 1, 2018, Avonette, Inc., sold equipment and accepted a six-month, 9%, $50,000…

A: Month from August 1, 2018 to December 31, 2018 = 5 months

Q: On January 1, a company with a December 31 fiscal year-end purchases some equipment for $1 million.…

A: Purchase price of equipment = $1million As per Real account rule, we DEBIT what comes in and CREDIT…

Q: On October 1, Bandor Company sold land (that cost $30,000) on credit for $35,000. The buyer issued…

A: Date Accounts title and explanation Debit ($) Credit ($) 1-Oct Note receivable $35,000…

Q: A company owes $20,000 on a truck purchased. Assume the company makes timely principle payments of…

A: Definition: Current portion of long-term notes payable: The principal amount of notes payable which…

Q: On May 10, the company purchased goods from Fox Company for $74,900, terms 2/10, n/30. Purchases and…

A: Journal Entries in the books of Pharoah company for 2021.

Q: Vim Company purchased an equipment on January 1, 2021 for P3,000,000 cash for the purpose of leasing…

A: Working Notes:-                                                       In this case Vim Co. the…

Q: On October 1, 2021, Grey Corp. purchased land by signing a six-month, 4% note for $225,000.  The…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: On June 30, Collins Management Company purchased land for $460,000 and a building for $520,000,…

A: Interest accrued on december 31 = Amount of notes payable x rate of interest x 6/12 = 620000*4%*6/12…

Q: On January 2, 2020, a public company sells machinery for $620,000. The in-store list price on the…

A: Notes receivable = Sale price of machinery - cash received = 620000 - 104000 = $516,000

Q: Skysong Cosmetics Co. purchased machinery on December 31, 2019, paying $52,900 down and agreeing to…

A: carrying value: Carrying value=$56,000*3.16987(PVIFA of 10% for 4 years)…

Q: On February 1, 2018, Innovation Company purchased a patent for $72,000 cash. Although the patent…

A:

Q: For each separate case, record an adjusting entry (If necessary)- a. Barga Company purchases $31,000…

A: Land does not depreciate, so there will be no adjusting for (b).  Depreciation expense for equipment…

Q: On January 1, Snipes Construction paid for earth-moving equipment by issuing a $300,000, 3-year note…

A: Determine the amount at which Snipes record the equipment and note.

Q: Tyndal Company had the following items that required adjustment at December 31, 2019.a. Purchased…

A: Adjusting entries: Adjusting entries are those journal entries that are passed at the end of the…

Q: On December 15, 2011, Rigsby Sales Co. sold a tract of land that cost $3,600,000 for $4,500,000.…

A: The correct option is Option “C”.   An installment receivables (net) of $3,200,000

Q: On June 30, Collins Management Company purchased land for $420,000 and a building for $580,000,…

A: Journal entry is an important and initial process of accounting cycle, through journal entry each…

Q: Prepare the journal entries to (a) update depreciation to September 30, 2022, and (b) record the…

A: Book Value as on January 1, 2022 = Cost - Accumulated Depreciation  Cost = $73600 Accumulated…

Q: 8. On February 1, 2021, Ace Company received $36,000 in advance for a three-year rental of land, and…

A: Adjusting entries are prepared at the end of the accounting period to ensure the accrual base…

Q: Holly Springs, Inc. contracted with Coldwater Corporation to have constructed a custom-made lathe.…

A: As per IAS 16, the assets are acquired, and consideration is deferred, the cash market price of such…

Q: Jade Larson Antiques owes $20,000 on a truck purchased for use in the business. Assume the company…

A:

Q: Fun Inc. purchased a truck from Phillips Co. by issuing a 3-month, 9% note payable for P50,000 on…

A: From November 1 to December 31 = 2 months Interest expense for 2 months = P50,000 x 9% x 2/12 = P750

Q: Jade Larson Antiques owes $20,000 on a truck purchased for use in the business. Assume the company…

A: Long-term notes payable: Long-term notes payable represent a legal and written promise made by the…

Q: On January​1, Orange Manufacturing paid $40,000 for a patent. Although it gives legal protection for…

A: Amortization is a reduction in the value of assets due to the usage of that asset.We can evaluate it…

Q: Liabilities on the Balance Sheet For each of the following situations, indicate the amount shown as…

A: A balance sheet shows a summary of all the business assets and liabilities at a given date. It…

Q: For each of the following situations, indicate the amount shown as a liability on the balance sheet…

A: Indicate liability amount to be shown on the balance sheet of K Inc as at Dec'31: a) Answer is…

Q: Serene Company purchases fountains for its inventory from Kirkland Inc. The following transactions…

A: Notes are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: Marin Cosmetics Co. purchased machinery on December 31, 2019, paying $47,300 down and agreeing to…

A: Excel formula : PV(rate,nper,pmyt,fv) = PV(8%,4,46400,0) Amortization schedule  Period Decrease…

Q: On June 30, Collins Management Company purchased land for $560,000 and a building for $520,000,…

A: Interest accrued =  Carrying value of notes x Interest rate x Time

Q: Stratus Inc. purchased equipment for $18,500 and received an invoice with terms 4/10, 3/30, n/45. If…

A: Stratus Incorporation purchased equipment and it had terms 4/10, 3/30, n/45. In this case, the…

Q: Arrow Co. entered Into a contract with a customer for $500,000. The contract is for the dellvery of…

A: The contract of 500000 has two separate performance obligations. 1. To sell the equipment having a…

Q: Sunland-on Ltd. sells rock-climbing products and operates an indoor climbing facility for climbing…

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

Q: outstanding a $50,000, 9 percent, two-year note payable issued on July 1, 2010. Payment of the…

A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…

Q: A computer is purchased for $1,521.55 on June 7, 2014 and a desk is purchased for $1,444.44 on…

A: Useful life: Assets Year Computer 5 year Desk 7 year Depreciation in 1st Year = Cost x…

Q: The following transaction occurred during Dec 31, 2021, for the Microchip Company. On August 1,…

A: It is assumed that the requirement for this question is the preparation of the journal entries.

Q: Iris Company operates a retail store and must determine the proper December 31, 2014 year-end…

A: Accrued liabilities are those liabilities for expenses which are incurred or expensed in current…

Q: At the beginning of the year, Lambert Motors issued the three notes described below. Interest is…

A:

Q: On January 1, 2021, Stoops Entertainment purchases a building for $550,000, paying $110,000 down and…

A: Given that, Cost of the building purchased = $550000 Down payment made = $110000 Notes payable…

Q: All of the current year's entries for Zimmerman Company have been made, except the following…

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