Ivanhoe Corp. sold property in exchange for a six-year note that has a maturity value of $34,615 and no stated interest rate. The property originally cost Ivanhoe $18,060. Assuming that a market interest rate of 9% is known, prepare the journal entry to record the sale of this property. (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 all debit entries before credit entries. For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answers to O decimal places, e.g. 5,275.) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Account Titles Debit Credit
Ivanhoe Corp. sold property in exchange for a six-year note that has a maturity value of $34,615 and no stated interest rate. The property originally cost Ivanhoe $18,060. Assuming that a market interest rate of 9% is known, prepare the journal entry to record the sale of this property. (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 all debit entries before credit entries. For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answers to O decimal places, e.g. 5,275.) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Account Titles Debit Credit
Chapter11: Property Dispositions
Section: Chapter Questions
Problem 84TA
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Transcribed Image Text:Ivanhoe Corp. sold property in exchange for a six-year note that has a maturity value of $34,615 and no stated interest rate. The
property originally cost Ivanhoe $18,060.
Assuming that a market interest rate of 9% is known, prepare the journal entry to record the sale of this property. (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 all debit entries before credit entries. For calculation purposes, use 5 decimal places as displayed in the factor
table provided. Round answers to O decimal places, e.g. 5,275.)
Click here to view the factor table PRESENT VALUE OF 1.
Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.
Account Titles
Debit
Credit
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