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.
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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.
Step by step
Solved in 2 steps
- Splish Corporation purchased a truck by issuing an $118,400, 4-year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 10%. Prepare the journal entry to record the purchase of this truck. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when 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 all debit entries before credit entries.) Account Titles and Explanation Debit CreditSheridan Corporation purchased a truck by issuing an $91,200, 4-year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 10%. Prepare the journal entry to record the purchase of this truck. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when 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 all debit entries before credit entries.) Account Titles and Explanation Equipment Notes Payable in Debit I 91200 CreditSheridan Corporation purchased a truck by issuing an $91,200, 4-year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 10%. Prepare the journal entry to record the purchase of this truck. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when 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 all debit entries before credit entries.) Account Titles and Explanation Debit Credit
- 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 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. 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 78,600Marin Corporation purchased a truck by issuing an $113,600, 4-year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 9%. Prepare the journal entry to record the purchase of this truck. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when 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.) Account Titles and Explanation Debit CreditTamarisk, Inc. purchased two trucks by issuing a $108,000, 5-year, zero-interest-bearing note to GEC Funding Inc. The market rate of interest for obligations of this nature is 11%. Prepare the journal entry to record the purchase of the two trucks. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
- Question. Garcia Corporation purchased a truck by issuing an $80,000, 4-year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 10%. Prepare the journal entry to record the purchase of this truck.Pearl plc purchased a truck by issuing an £76,800, 4-year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 6%. Prepare the journal entry to record the purchase of this truck. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when 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.) Account Titles and Explanation Debit CreditNeed help
- How much should be recorded as the purchase price of theindividual PPE items: 1. Equipment has an invoice price of P1,000,000, and a creditterm of 2/30, n/60. Cash discount was not taken. 2. Paid cash of P200,000 and issued a note for the purchase ofa machinery. The note has a face value of P1,000,000 dueafter three years and an effective interest rate of 7%. 3. Five units of equipment was purchased through theissuance of 1,000 pieces of P1,000 par‐value shares. Eachequipment has a fair value of P300,000 while a share isvalued at P1400. 4. Issued bonds with face value of P5,000,000 and fair value ofP5,100,000 to purchase equipment with a fair value ofP4,900,000. 5. The old equipment has an original cost of P1,500,000,accumulated depreciation of P600,000, and fair value ofP1,000,000. The new equipment obtained throughexchange has a fair value of P1,200,000. The balance was settled with cash. The exchange will not affect the future cashflows of the entity.Provide the Correct answer of this question on text Format.Teal plc purchased a truck by issuing an £86,400, 4-year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 10%. Prepare the journal entry to record the purchase of this truck. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when 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.) Account Titles and Explanation Debit Credit