Ancing Co. Acquired a machine and, as consideration, issued a three year, non interest bearing note with face amount of 1,600,000, payable im lump-sum. Case 1: the cash selling price of the machine is 1,400,000. Provide the journal entry. Case 2: the cash selling price of the machine is not determinable. The prevailing market rate of interest for similar debt instruments is 10%. Provide the journal entry.
Ancing Co. Acquired a machine and, as consideration, issued a three year, non interest bearing note with face amount of 1,600,000, payable im lump-sum. Case 1: the cash selling price of the machine is 1,400,000. Provide the journal entry. Case 2: the cash selling price of the machine is not determinable. The prevailing market rate of interest for similar debt instruments is 10%. Provide the journal entry.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Ancing Co. Acquired a machine and, as consideration, issued a three year, non interest bearing note with face amount of 1,600,000, payable im lump-sum.
Case 1: the cash selling price of the machine is 1,400,000. Provide the
Case 2: the cash selling price of the machine is not determinable. The prevailing market rate of interest for similar debt instruments is 10%. Provide the journal entry.
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