Aa 139. ate2025202531, 202531, 2025Account Titles and ExplanationLandDiscount on Notes PayableNotes PayableEquipmentDiscount on Notes PayableNotes PayableInterest ExpenseDiscount on Notes PayableInterest ExpenseDiscount on Notes PayableCashDebit290000DOO4300003190025800CreditE2900004300003190025800Q On January 1, 2025, Cullumber Company makes the two following acquisitions.1.2.The company has to pay 11% interest for funds from its bank.Click here to view factor tables.(a) Record the two journal entries that should be recorded by Cullumber Company for the two purchases on January 1, 2025.(b)Record the interest at the end of the first year on both notes using the effective-interest method.No.Purchases land having a fair value of $290,000.00 by issuing a 4-year, zero-interest-bearing promissory note in the faceamount of $440,240.(Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 2 decimal places, e.g. 58,971.25. If no entry isrequired, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amountis entered. Do not indent manually. List all debit entries before credit entries.)(a)1.Purchases equipment by issuing a 6%, 8-year promissory note having a maturity value of $430,000.00 (interest payableannually).2.(b)1.2.DateJanuary 1, 2025January 1, 2025December 31, 2025December 31, 2025Account Titles and ExplanationLandDiscount on Notes PayableNotes PayableEquipmentDiscount on Notes PayableNotes PayableInterest ExpenseDiscount on Notes PayableInterest ExpenseDiscount on Notes PayableCashDebit2900004300003190025800

A non interest bearing note is a note which don't have stated the interest rate.in this type of…

On January 1, 2025, Cullumber Company makes the two following acquisitions. 1. 2. Purchases land having a fair value of $290,000.00 by issuing a 4-year, zero-interest-bearing promissory note in the face amount of $440,240. Purchases equipment by issuing a 6%, 8-year promissory note having a maturity value of $430,000.00 (interest payable annually). The company has to pay 11% interest for funds from its bank. (a) (b) Click here to view factor tables. Record the two journal entries that should be recorded by Cullumber Company for the two purchases on January 1, 2025. Record the interest at the end of the first year on both notes using the effective-interest method. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 2 decimal places, e.g. 58,971.25. 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.)

On January 1, 2025, Cullumber Company makes the two following acquisitions. 1. 2. Purchases land having a fair value of $290,000.00 by issuing a 4-year, zero-interest-bearing promissory note in the face amount of $440,240. Purchases equipment by issuing a 6%, 8-year promissory note having a maturity value of $430,000.00 (interest payable annually). The company has to pay 11% interest for funds from its bank. (a) (b) Click here to view factor tables. Record the two journal entries that should be recorded by Cullumber Company for the two purchases on January 1, 2025. Record the interest at the end of the first year on both notes using the effective-interest method. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 2 decimal places, e.g. 58,971.25. 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

What is FASB ASC Topic 842 about?
Where does 4.0312, 2.9931, and 3.5431 came from? Can you explain?
it say 43,636.36 is incorrect
it say 6224.00 is incorrect
Explain what is included in Form 10-Q and why is it needed.
Data: So 101; X= 114; 1+r= 1.12. The two possibilities for sr are 143 and 85.
10078+0987=
What Is Section 1031? A brief explanation on this?
Other than 1040, what other forms need to be completed?
Code 71046
E14.2
What information is included in Form 10-K?