8.4 Chevron Corporation purchased a truck by issuing an $80,000, four-year, non-interest-bearing note to Equality Inc. The market interest rate for obligations of this nature is 8%. Required Calculate the purchase price using any of the three methods (tables, financial calculator, or Excel). Prepare the journal entry to record the truck purchase.

8.4 Chevron Corporation purchased a truck by issuing an $80,000, four-year, non-interest-bearing note to Equality Inc. The market interest rate for obligations of this nature is 8%. Required Calculate the purchase price using any of the three methods (tables, financial calculator, or Excel). Prepare the journal entry to record the truck purchase.

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

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 14RE: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank....

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Pearl Enterprises purchased store equipment by making a $2,960 cash down payment and signing a 1-year, $34,040, 10% note payable. The purchase was recorded as follows. Correct the entry below Equipment 40,404 Cash 2,960 Notes Payable 34,040 Interest Payable 3,404
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On January 1, Year 1, a company purchased land costing $800,000. Instead of paying cash at the time of purchase, the company plans to make four installment payments of $215,221.64 on June 30 and December 31 in Year 1 and Year 2. The payments include interest at a rate of 6%. Required: 1. Record the purchase of land when the note is issued. 2. Record the first installment payment on June 30, Year 1, and the second installment payment on December 31, Year 1. 3. Calculate the balance of Notes Payable and Interest Expense on December 31, Year 1.
Roberts Corporation purchased some equipment by issuing a $20,000 non-interest-bearing, four-year note when interest rates were 8%. Actuarial information for 8% and four periods follows: Future amount of 1 1.360 Present value of 1 0.735 In the entry to record this purchase, there would be a $5,300.00 credit to Discount on Notes Payable. $14,700.00 debit to Equipment. $27,210.88 credit to Notes Payable. $20,000 debit to Equipment.
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Requirement 4. Record the payment of the note payable (principal and interest) on its maturity date. (Record debits first, then credits. Exclude explanations from journal entries.) ss attached thanks 4y1 4
On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of $15,000 and a maturity value (principal plus interest) of $15,400. The discount is calculated to be $385, and the accrued interest income is $100. The recourse liability is estimated to be $1,000. Required: Prepare the journal entry of Phillips to record the sale of the note receivable.
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