Monty Corp. sells idle machinery to Sandhill Company on July 1, 2020, for $63,000. Monty agrees to repurchase this equipment from Sandhill on June 30, 2021, for a price of $66,780 (an imputed interest rate of 6%). Prepare the journal entry for Monty for the receipt of cash from Sandhill on July 1, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Ir no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit July 1, 2020 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare any other necessary journal entry for Monty in 2020. (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.) Date Account Titles and Explanation Debit Credit December 31, 2020 Prepare the journal entries for Monty when the machinery is repurchased on June 30, 2021. (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.) Date Account Titles and Explanation Debit Credit June 30, 2021 (To record interest expense) June 30, 2021 (To record repayment)
Monty Corp. sells idle machinery to Sandhill Company on July 1, 2020, for $63,000. Monty agrees to repurchase this equipment from Sandhill on June 30, 2021, for a price of $66,780 (an imputed interest rate of 6%). Prepare the journal entry for Monty for the receipt of cash from Sandhill on July 1, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Ir no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit July 1, 2020 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare any other necessary journal entry for Monty in 2020. (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.) Date Account Titles and Explanation Debit Credit December 31, 2020 Prepare the journal entries for Monty when the machinery is repurchased on June 30, 2021. (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.) Date Account Titles and Explanation Debit Credit June 30, 2021 (To record interest expense) June 30, 2021 (To record repayment)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Monty Corp. sells idle machinery to Sandhill Company on July 1, 2020, for $63,000. Monty agrees to repurchase this equipment from Sandhill on June 30, 2021, for a price of $66,780 (an imputed
interest rate of 6%).
Prepare the journal entry for Monty for the receipt of cash from Sandhill on July 1, 2020. (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.)
Date
Account Titles and Explanation
Debit
Credit
July 1, 2020
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Prepare any other necessary journal entry for Monty in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is
required, selecet "No Entry" for the account titles and enter 0 for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
December 31, 2020
Prepare the journal entries for Monty when the machinery is repurchased on June 30, 2021. (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.)
Date
Account T
itles and Explanation
Debit
Credit
June 30, 2021
(To record interest expense)
June 30, 2021
(To record repayment)
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