On December 31, 2020, Pina Company acquired a computer from Plato Corporation by issuing a $615,000 zero-interest-bearing note, payable in full on December 31, 2024. Pina Company's credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a $63,000 salvage value. (a) Prepare the journal entry for the purchase on December 31, 2020. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to O decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31, 2020

On December 31, 2020, Pina Company acquired a computer from Plato Corporation by issuing a $615,000 zero-interest-bearing note, payable in full on December 31, 2024. Pina Company's credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a $63,000 salvage value. (a) Prepare the journal entry for the purchase on December 31, 2020. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to O decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31, 2020

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 10MC: On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major...

See similar textbooks

Related questions

Q: Bowman Corporation is considering an investment in special-purpose equipment to enable the company…

A: Formula used: Payback Period = Equipment costsNet Income including Depreciation Return on Average…

Q: Factory Overhead $ 126,000.00 j. Close out the factory overhead balance to cost of goods sold. Debit…

A: A journal entry is used to record day-to-day business transactions in the book of the company.…

Q: Hi there! I've been stuck on these two problems for > two hours now and I'm not at all sure what…

A: For Question1.Amount borrowed given: $ 8513Rate of interest: 17.50% ( i.e. 17.50% for 365…

Q: Select whether each of the following accounts normally has a debit balance or a credit balance:

A: Under generally accepted accounting principles, All the assets and expenses accounts has normal…

Q: The chart of accounts must be tailorod to an organizations spocific needs. Discuss how the chart of…

A: Answer: Chart of accounts is the set of the financial accounts that is generally used by any…

Q: What payment should be made on an invoice for $500 dated November 16, carrying terms 4/10, net 30?

A: A commercial document which is used to record the transactions between the buyer and the seller is…

Q: Kindly answer the 13, 14 and 15 question thank you

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: Corporation's December 31, balance sheet showed the following: 7% preferred stock, $20 par value,…

A: The dividend is declared to the shareholders from the retained earnings of the business. The…

Q: On June 18, Stanton Electronics purchased, on credit, 1,700 TV sets for $525 each. Stanton plans to…

A: Inventory purchased = $525 * 1,700 = $892,500

Q: In a thoughtful and well-written response, answer the following: If you were thinking about writing…

A: The answers can be seen below:

Q: Samuelson and Messenger (SAM) began 2021 with 200 units of its one product. These units were…

A: Perpetual inventory system records the inventories through use of technology when the goods are…

Q: On October 1, Jerry's Lighting purchased merchandise with a list price of $8,700 with credit terms…

A: Total amount paid = Net Purchase - discount amount where, Net Purchase = list price - purchase…

Question

Give me answer within 45 minutes please I will give you upvotes its urgent .....thankyou..

On December 31, 2020, Pina Company acquired a computer from Plato Corporation by issuing a $615,000 zero-interest-bearing
note, payable in full on December 31, 2024. Pina Company's credit rating permits it to borrow funds from its several lines of credit
at 10%. The computer is expected to have a 5-year life and a $63,000 salvage value.
(a)
Prepare the journal entry for the purchase on December 31, 2020. (Round present value factor calculations to 5 decimal places, e.g.
1.25124 and the final answers to O decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter O
for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
December
31, 2020

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

On January 1, 2019, Boater Company issues a 20,000 non-interest-bearing, 5-year note for equipment. Neither the fair value of the note nor the equipment is determinable. Boaters incremental borrowing rate is 9%. The asset has a useful life of 7 years. Prepare the journal entry for Boater to record the issuance of the note on January 1.
On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major customer in exchange for used equipment. The equipment had originally cost Park 200,000 and had a book value of 20,000 on the date of the sale. At the 12% imputed interest rate for this type of loan, the present value of the note is 25,500 on January 1, 2019. Park uses the effective interest rate. What is the carrying value of the note receivable on Parks December 31, 2019, balance sheet? a. 28,560 b. 29,000 c. 32,500 d. 36,000
On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
Hamlet Corporation purchases computer equipment at a price of 100,000 on January 1, 2019, paying 40,000 down and agreeing to pay the balance in three 20.000 annual instalments beginning December 31, 2019. It is not possible to value either the equipment or the 60,000 note directly; how-ever, Hamlet's incremental borrowing rate is 12%. Required: 1. Prepare a schedule to compute the interest expense and discount amortization on the note. 2. Prepare all the journal entries for Hamlet to record the issuance of the note, each annual interest expense, and the three annual installment payments.
On December 31, 2020, Martinez Company acquired a computer from Plato Corporation by issuing a $564,000 zero-interest-bearing note, payable in full on December 31, 2024. Martinez Company's credit rating permits it to borrow funds from its several lines of credit at 12%. The computer is expected to have a 5-year life and a $73,000 salvage value. (a) Your answer is correct. Prepare the journal entry for the purchase on December 31, 2020. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to O decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date December 31, 2020 Account Titles and Explanation Equipment Discount on Notes Payable Notes Payable Debit 358422 205578 Credit 564000
On December 31, 2020, Faital Company acquired a computer from Plato Corporation by issuing a $600,000 zero-interest-bearing note, payable in full on December 31, 2024. Faital Company's credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a $70,000 salvage value. Instructions (Round answers to the nearest cent.) a. Prepare the journal entry for the purchase on December 31, 2020. b. Prepare any necessary adjusting entries relative to depreciation (use straight-line) and amortization (use effective-interest method) on December 31, 2021. c. Prepare any necessary adjusting entries relative to depreciation and amortization on December 31, 2022.
Date 12/31/25 12/31/26 12/31/27 12/31/28 12/31/29 Schedule of Note Discount Amortization Debit Interest Expense / Credit Discount on Notes Payable $ Carrying Value of Note
On December 31, 2022, Shamrock plc acquired a computer from Plato Group by issuing a £606,000 zero-interest-bearing note, payable in full on December 31, 2026. Shamrock's credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a £65,000 residual value. (a) Prepare the journal entry for the purchase on December 31, 2022. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to O decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date December 31, 2022 Account Titles and Explanation Debit Credit
(e) On December 31, 2015, Malton Company acquired a computer from Hamilton Corporation by issuing a $600,000 zero-interest-bearing note, payable in full on December 31, 2019. Malton Company’s credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a $70,000 residual value. Prepare the journal entry for the purchase on December 31, 2015 and any necessary adjusting entries relative to depreciation (use straight-line) and amortization on December 31, 2016.
On December 31, 2020, Pearl Limited acquired a machine from Pronghorn Corporation by issuing a $520,000, non–interest-bearing note that is payable in full on December 31, 2024. The company’s credit rating permits it to borrow funds from its several lines of credit at 10%. The machine is expected to have a five-year life and a $80,000 residual value. Record journal entries for December 31, 2020, Prepare any necessary adjusting entries related to depreciation of the asset (use straight-line) and amortization of the note (use the effective interest method) on December 31, 2021.
On December 31, 2015, Malton Company acquired a computer from Hamilton Corporation by issuing a $600,000 zero-interest-bearing note, payable in full on December 31, 2019. Malton Company’s credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a $70,000 residual value. Prepare the journal entry for the purchase on December 31, 2015 and any necessary adjusting entries relative to depreciation (use straight-line) and amortization on December 31, 2016.
On December 31, 2020, Pearl Limited acquired a machine from Pronghorn Corporation by issuing a $520,000, non–interest-bearing note that is payable in full on December 31, 2024. The company’s credit rating permits it to borrow funds from its several lines of credit at 10%. The machine is expected to have a five-year life and a $80,000 residual value.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. Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, calculate the value of the note and prepare the journal entry for the purchase on December 31, 2020. (Hint: Refer to Chapter 3 for tips on calculating and use the amount arrived at by using the time value of money tables for the journal entry.) Please help with the solution in excel