Complete the journal entries for the following investing transactions.a. A farmer buys a tract of land for $50,000.b. A farmer leases a tractor that is worth $50,000 and will own the tractor at the end of thelease.c. A farmer builds a shed for $7,000.d. A farmer buys five cows for $6,000.e. A farmer sells a parcel of land to a local municipality for $36,000. The original cost ofthe land was $36,000.

1. Land is a Fixed assets. 2. As land is leased we will debit lessee account and land will be…

Answered: Complete the journal entries for the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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. An engineer signs a contract to work in Hong Kong for 5 years. The contract specifies that at the end of his 5 years of service, he will receive $90,000 at the end of each of the following 3 years. Assume funds earn 6% compounded annually. (a) Find the amount needed at the end of his 5 years of service to fund the payments. (b) Find the end-of-year payment into a sinking fund needed to accumulate this amount. * $240,570.90; $42,677.28 $250,570.90; $45,677.28 $42,677.28; $240,570.90 Other:
A University student required to live in the house adjoining the University. Calculate his taxable accommodation benefit based on the following scenarios: A) His stipend is $60,000 per month and the value of the accommodation is $40,000 per month. B) His stipend is $75,000 and the value of the accommodation is $100,000.00 per month. NB: tHIS QUESTION IS CONSIST OF A AND B, PLEASE TO ANSWER BOTH QUESTIONS SEPERATELY
Tobias has a brokerage account and buys on the margin, which resulted in an interest expense of $29,200 during the year. Income generated through the brokerage account was as follows: Municipal interest $58,400 Taxable dividends and interest 292,000 If required, round any division to two decimal places and use in subsequent computation. Round your final answer to the nearest dollar. How much investment interest can Tobias deduct?
Joe Jay purchased a new colonial home for $260,000, putting down 20%. He decided to use Loyal Bank for his mortgage. They were offering a 6 1/2% for a 25-year mortgage. The principal after the first payment had a balance outstanding of: Multiple Choice $259,652.79 $207,722.24 $206,595.57 $258,244.46
Ben can obtain a 5-year license to operate the concession stand at his local beach for $75,000. If annual profits are estimated to be $25,000, what IRR will Ben realize on his investment
An investor is looking for a loan for an investment property that he has found. He can afford a monthly payment of $1,475. The interest rated quoted to him was 7.25%. He built the following table from that information. A $74,049 $125,638 $161,580 t 5 10 15 a) A(5) = b) If the investment property cost $161,580, how many years must the investor make monthly payments? t 20 25 30 A $186,620 $204,066 $216,220
Talbot purchases business machinery for a price of $100,000. Talbot pays the seller $20,000 in cash and finances the rest by giving the seller a note for $80,000. What is Talbot’s initial basis in this machinery?
Soo Young purchased a new home for $510,000. At the same time, he sold a home for $495,000 in which he had a net equity of $304,000 after paying off the existing mortgage of $191,000. He used $224,300 that equity as a down payment on the new home while borrowing the rest with a new mortgage. He used $50,000 of the net equityto buy a new SUV. The closing costs on the sale of his old home were $29,700 and were subtracted from the net equity. What is the immediate impact of this transaction on Soo Young's net worth? a. His net worth decreases by $29,700. b. His net worth decreases by $94,700. c. His net worth increases by $15,000. d. His net worth increases by $20,300. e. His net worth remains the same.
A buyer has agreed to purchase a home for $50,500. The buyer will assume a first mortgage in the amount of $32.200, will deposit $2.200 as earnest money, will deposit $5,600 in cash at cosing, and wl give the sellet a purchase- money mortgage for the balance. What is the amount of the purchase-money mortgage? a)$24,400 b)$18,300 c)$16,100 d)$10,500
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