On January 1, Tamarisks Inc. sold used equipment with a cost of $17,400 and a carrying amount of $2,300 to Flint Corp. in exchange for a $5,800, three-year non-interest-bearing note receivable. Although no interest was specified, the market rate for a loan of that risk would be 8% and assume that Tamarisks follows ASPE. 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. (a) Your answer is correct. Prepare the entry to record the sale of Tamarisks' equipment and receipt of the note. (Round answers to O decimal places, e.g. 125. 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. List all debit entries before credit entries. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (b) Account Titles and Explanation Notes Receivable Accumulated Depreciation Equipment Equipment Gain on Disposal of Equipment eTextbook and Media List of Accounts Account Titles and Explanation Interest for Year 1: Interest for Year 2: Debit Interest for Year 3: 4604 Debit 15100 Prepare the entries to record the recognition of interest at the end of each year if Tamarisks uses the straight-line method. (Round answers to O decimal places, e.g. 125. 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. List all debit entries before credit entries.) Credit 0000 17400 Credit 2304
On January 1, Tamarisks Inc. sold used equipment with a cost of $17,400 and a carrying amount of $2,300 to Flint Corp. in exchange for a $5,800, three-year non-interest-bearing note receivable. Although no interest was specified, the market rate for a loan of that risk would be 8% and assume that Tamarisks follows ASPE. 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. (a) Your answer is correct. Prepare the entry to record the sale of Tamarisks' equipment and receipt of the note. (Round answers to O decimal places, e.g. 125. 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. List all debit entries before credit entries. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (b) Account Titles and Explanation Notes Receivable Accumulated Depreciation Equipment Equipment Gain on Disposal of Equipment eTextbook and Media List of Accounts Account Titles and Explanation Interest for Year 1: Interest for Year 2: Debit Interest for Year 3: 4604 Debit 15100 Prepare the entries to record the recognition of interest at the end of each year if Tamarisks uses the straight-line method. (Round answers to O decimal places, e.g. 125. 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. List all debit entries before credit entries.) Credit 0000 17400 Credit 2304
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Ef 368.
Transcribed Image Text:On January 1, Tamarisks Inc. sold used equipment with a cost of $17,400 and a carrying amount of $2,300 to Flint Corp. in exchange
for a $5,800, three-year non-interest-bearing note receivable. Although no interest was specified, the market rate for a loan of that
risk would be 8% and assume that Tamarisks follows ASPE.
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.
(a)
(b)
Your answer is correct.
Prepare the entry to record the sale of Tamarisks' equipment and receipt of the note. (Round answers to O decimal places, e.g. 125.
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. List all debit entries before credit entries. For calculation purposes, use 5 decimal
places as displayed in the factor table provided.)
Account Titles and Explanation
Notes Receivable
Accumulated Depreciation - Equipment
Equipment
Gain on Disposal of Equipment
eTextbook and Media
List of Accounts
Account Titles and Explanation
Interest for Year 1:
Interest for Year 2:
Debit
Interest for Year 3:
4604
Debit
15100
Prepare the entries to record the recognition of interest at the end of each year if Tamarisks uses the straight-line method. (Round
answers to O decimal places, e.g. 125. 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. List all debit entries before credit
entries.)
Credit
17400
Credit
2304
100⁰
11
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