Please help, give me a detailed answer to this. Current Attempt in ProgressWildhorse Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2025, to expand its productioncapacity to meet customers' demand for its product. Wildhorse issues an $1,840,000, 5-year, zero-interest-bearing note to CentralMichigan for the new equipment when the prevailing market rate of interest for obligations of this nature is 12%. The company willpay off the note in five $368,000 installments due at the end of each year over the life of the note.(a)Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimalplaces, 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 ExplanationeTextbook and MediaDebitCredit

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Answered: Current Attempt in Progress Wildhorse…

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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Headland Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2025, to expand its production capacity to meet customers' demand for its product. Headland issues an $640,000, 5-year, zero-interest-bearing note to Central Michigan for the new equipment when the prevailing market rate of interest for obligations of this nature is 7%. The company will pay off the note in five $128.000 installments due at the end of each year over the life of the note. T - Your answer is partially correct Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 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 Discount on Hobes Payable Notes Payable…
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Pharoah Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2020, to expand its production capacity to meet customers' demand for its product. Pharoah issues a(n) $1,520,000, 5-year, zero-interest- bearing note to Central Michigan for the new equipment when the prevailing market rate of interest for obligations of this nature is 12%. The company will pay off the note in five $304,000 installments due at the end of each year over the life of the note. Prepare the journal entry at the date of purchase.
Novak Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2020, to expand its production capacity to meet customers’ demand for its product. Novak issues a(n) $560,000, 5-year, zero-interest-bearing note to Central Michigan for the new equipment when the prevailing market rate of interest for obligations of this nature is 12%. The company will pay off the note in five $112,000 installments due at the end of each year over the life of the note.
Novak Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2020, to expand its production capacity to meet customers’ demand for its product. Novak issues a(n) $560,000, 5-year, zero-interest-bearing note to Central Michigan for the new equipment when the prevailing market rate of interest for obligations of this nature is 12%. The company will pay off the note in five $112,000 installments due at the end of each year over the life of the note.
Chippewas Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2020, to expand its production capacity to meet customers’ demand for its product. Chippewas issues an $800,000, 5-year, zero-interest-bearing note to Central Michigan for the new equipment when the prevailing market rate of interest for obligations of this nature is 12%. The company will pay off the note in five $160,000 installments due at the end of each year over the life of the note. Instructions (Round to nearest dollar in all computations.) a. Prepare the journal entry(ies) at the date of purchase. b. Prepare the journal entry(ies) at the end of the first year to record the payment and interest, assuming that the company employs the effective-interest method. c. Prepare the journal entry(ies) at the end of the second year to record the payment and interest. d. Assuming that the equipment had a 10-year life and no salvage value, prepare the journal entry necessary to…
Waterway Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2020, to expand its production capacity to meet customers' demand for its product. Waterway issues a(n) $720,000, 5-year, zero- interest-bearing note to Central Michigan for the new equipment when the prevailing market rate of interest for obligations of this nature is 12%. The company will pay off the note in five $144,000 installments due at the end of each year over the life of the note. 1. Prepare the journal entry(ies) at the end of the first year to record the payment and interest, assuming that the company employs the effective-interest method. 2. Prepare the journal entryies) at the end of the second year to record the payment and interest. 3. Assuming that the equipment had a 10-year life and no salvage value, prepare the journal entry necessary to record depreciation in the first year. (Straight-line depreciation is employed.)
The Moustache Company is replacing most of the windows in its Alden factory by purchasing them under a note agreement with the Blattner Window Design Company on January 1, 2019. Moustache financed $37,908,000, and the note agreement will require $10 million in annual payments starting on December 31, 2019 and continuing for a total of four more years(final payment December 31, 2023). Blattner will charge Moustache the market interest rate of 10% compounded annually. What is the amount of the 2020 interest expense? A. $3,290,800 B. $2,790,800 C. $4,000,000 D. $3,169,880
The following problem requires present value information: Biotech sold a patent on a new blood analyzer to Pharma. The sales agreement which was signed on January 1, 2019 requires Pharma to pay Biotech $1 million immediately. In addition, Pharma is required to pay $700,000 each December 31 for 20 years starting with December 31, 2019. Pharma and Biotech judge that a 9 percent is an appropriate interest rate for this arrangement. (a) Compute the present value of the receivable on Biotech’s books on January 1, 2019 immediately after receiving the $1 million down payment. (b) Compute the present value of the receivable on Biotech’s books on December 31, 2019 Enter your answer(s) in the following format rounded off to the nearest dollar (c) Compute the present value of the receivable on Biotech’s books on December 31, 2020
Weat Subject: acounting
CCC Company sold an equipment with a cost of P750,000 for an installment price of P1,000,000 on January 2, 2020. CCC received 20% down payment and the balance will be paid in eight equal quarterly installment starting March 31, 2020. The market rate of interest is 10%. The customer defaulted on the payment of fourth quarterly installment which resulted to repossession of the equipment. CCC anticipates selling price on reconditioned equipment of P400,000 after reconditioning it for P50,000. The gross profit for reconditioned equipment is expected to be 15% (Round off PV factor to 4 decimal places).How much is the Repossessed Item to be reported on December 31, 2020?how much is the Gain (Loss) on Repossession?how much is the Interest Revenue in 2020?

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