On January 1, 2025, Sheridan Company makes the two following acquisitions. 1. 2. Purchases land having a fair value of $220,000.00 by issuing a 4-year, zero-interest-bearing promissory note in the face amount of $333,975. Purchases equipment by issuing a 6%, 9-year promissory note having a maturity value of $280,000.00 (interest payable annually). 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 Sheridan 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. (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, Sheridan Company makes the two following acquisitions. 1. 2. Purchases land having a fair value of $220,000.00 by issuing a 4-year, zero-interest-bearing promissory note in the face amount of $333,975. Purchases equipment by issuing a 6%, 9-year promissory note having a maturity value of $280,000.00 (interest payable annually). 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 Sheridan 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. (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

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Question

On January 1, 2025, Sheridan Company makes the two following acquisitions.
1.
2.
Purchases land having a fair value of $220,000.00 by issuing a 4-year, zero-interest-bearing promissory note in the face amount of $333,975.
Purchases equipment by issuing a 6%, 9-year promissory note having a maturity value of $280,000.00 (interest payable annually).
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 Sheridan 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.
(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.)

No.
(a) 1.
2.
(b) 1.
2.
<
Account Titles and Explanation
Debit
/////////
Credit
‒‒‒‒‒‒‒‒

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