On Jan 1 2020, SEK industries bought a specially built robot spray printer for its production line. The company issues a $100,000, five-year, zero interest-bearing note to Wrigley Robotics for the new equipment. The prevailing market rate of interest of obligations of this nature is 10%.  Record the journal entries associated with this purchase on (a) December 31, 2020 (b) December 31, 2021 (c) December 31, 2022

Q: Use the following to answer the next 2 questions: The following refers to a purchase of a machine by…

A: Journal entry: It is the duty of the accountant to record business economic and non-economic…

Q: On January 1, 2020, Jet Air Inc. contracted with Systems Plus Inc. to manufacture heavy equipment.…

A: Equipment recorded value = Present value of face value of note + Present value of interest payments…

Q: Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles. The snowmobiles were delivered on…

A: Amount of notes receivable: $44,000Rate of interest: 8%Journal entries needs to be prepared.

Q: x Your answer is incorrect. How much total revenue should be recognized in 2023? Revenue recognized…

A: Interest = Face value of bonds - Fair value of goods= $7,920 - $7,200= $720

Q: On August 1, 2019, Pereira Corporation has sold 1,600 Wiglows to Mendez Company at $450 each. Mendez…

A: Unearned warranty revenue on December 31, 2019 = $19,200*5/12…

Q: Cass Company enters into a contract with Dearborn Inc. to sell it $50,000 of goods with delivery on…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: On May 1, 2020, Splish Company enters into a contract to transfer a product to Eric Company on…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Cullumber Electronics issues a $355,500, 3%, 10-year mortgage note on December 31, 2021. The…

A: Interest = Loan amount x rate of interest x no. of months in calendar year /12 months Loan Payment =…

Q: Cullumber Electronics issues a $355,500, 3%, 10-year mortgage note on December 31, 2021. The…

A: Interest = Loan amount x rate of interest x no. of months in calendar year /12 months Loan Payment =…

Q: On January 2, 2020, Crane Company sells production equipment to Fargo Inc. for $46,000. Crane…

A: Note: Amount for warranty services is not given separatly in the question. So we are taking the…

Q: Waterway Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2020,…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: On October 1, 2020, Sage sold one of its super deluxe combination gas/charcoal grills to a local…

A: Discount on notes receivable = Notes receivables  - Sales revenue  PVAF ( 10% , 3 years )  = 0.75131…

Q: On January 2, 2020, Brook Company acquired machinery by Issuing a 5%, $350,000 note due in 5 years…

A: Current portion of liability means the obligation that an entity would settle within a year and…

Q: On February 1, 2021, Stealth Trucks sold a diesel rig to Kansas Transports for $250,000, receiving a…

A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…

Q: Question 1 Facebook Inc. bought WhatsApp Inc. for a total of S19 billion in cash and shares in…

A: "Since you have posted multiple questions, we will solve the first question for you. To get the…

Q: blishing Company signed a contract with an author to publish her book. The signing took place on…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: Oriole Company issues a $378,000, 9%, 10-year mortgage note on December 31, 2019. The proceeds from…

A: Installment note: Installment note is an obligation in which the defaulter needs to repay the…

Q: On May 1, 2020, Indigo Inc. entered into a contract to deliver one of its specialty mowers to…

A: Journal entry record the financial transactions. In case money is received in advance, it is…

Q: Problem 23-2 (ACP) Credulous Company purchased equipment on January 1, 2020 under the following…

A: Hi! Thank you for the question, As per the honor code, we'll answer the first question since the…

Q: Nash Corporation sells computers under a 2-year warranty contract that requires the corporation to…

A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…

Q: Novak Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2020, to…

A: Here in this question, we are required to make journal entry for purchase of asset. When purchase of…

Q: Blue Devil Inc. sold goods to Black Mountain Corp. for $50,000 on March 1, 2020, accepting Black…

A: Interest: Interest is the amount of interest paid on the issue price of the notes by the issuer at…

Q: On January 2, 2023, Sunland Inc. sells goods to Bramble Company in exchange for a…

A: Interest is a amount which is paid by a borrower to the person from the money has been taken by him…

Q: On June 1, 2021, Blossom & Sons sold equipment to James Landscaping Service in exchange for a…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: Michek Company loans Sarasota Company $2,000,000 at 6% for 3 years on January 1, 2020. Michek…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: Pharoah Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2020,…

A: Journal entry is an art of recording classifying and summarising the business transaction into…

Q: On June 30, 2019, Liang sold its patent with a carrying value of $79,884 to Miller Enterprises for…

A: Amortization means fall in value of intangible assets because of use of assets, passage of time or…

Q: At January 1, 2021, Brant Cargo acquired equipment by issuing a five-year, $150,000 (payable at…

A: Prepare the journal entry for Brant Cargo to record the purchase of the equipment. Date…

Q: Talkington Electronics issues a $400,000, 8%, 10‐year mortgage note on December 31, 2019. The…

A: The term mortgage note alludes to a promissory note that is gotten by a home loan, which vows the…

Q: Feller, Inc. sells a certain machine for $40,000. Included in this price is an implied service-type…

A: The objective of the question is to determine the total sales that Feller, Inc. should record for…

Q: On June 30, 2019, Liang sold its patent with a carrying value of $79,884 to Miller Enterprises for…

A: Patent: It refers to an intangible asset of the business which cannot be touched or seen In short,…

Q: Magenta Company purchased a machine from Pink Corporation on October 31, 2021. In payment for the…

A: Income statement shows company's income and expenses over a period of time.Revenues, Expenses, and…