Polo Publishers purchased a multi-color offset press with terms of $50,000 to be paid at the date of purchase, and a non-interest-bearing note requiring payment of $20,000 at the end of each year for five years. The interest rate implicit in the purchase contract is 11%. Polo would record the asset at
Q: Disclosures relating to PP&E assets are Select one: a. less extensive under ASPE. b. more…
A: Before we answer the question, let's understand the terms involved. PP&E stands for Property,…
Q: expert of account please help me
A: Given Data:Selling Price per Unit: $100Units Produced: 5,500Units Sold: 5,400Unit in Ending…
Q: Hi expert please give me answer accounting questions
A: Given Information:Principal amount (Note payable) = $5,000Interest rate = 5% per yearInterest…
Q: Give me answer accounting questions don't use ai
A: Step 1: Define Return on AssetsThe assets are the economic resources of the company that are…
Q: Provide correct answer general accounting
A: Step 1: Define Overhead Allocation BaseIn determining the predetermined overhead rate, the company…
Q: Accounting Question need answer please
A: Step 1: Define AssetsAssets can be defined as something valuable that a company uses in the…
Q: Please provide correct answer financial accounting
A: Step 1: Define Predetermined Overhead RateThe predetermined overhead rate of the assembly department…
Q: Provide correct answer the accounting question not use ai
A: Step 1: Define Manufacturing Overhead costThe cost incurred by the company in the manufacturing…
Q: Follow the Instructions
A: Answer 1 The first thing we will do is to determine first the proper treatment of the transactions…
Q: The company has a net income of $199,000, provide correct solution for these accounting question
A: Step 1: Define Accounts ReceivableWhen a company gives credit to its clients, it creates an account…
Q: General accounting question
A: Step 1: Define Receivable TurnoverReceivable turnover is a financial ratio used in corporate…
Q: Need help with this question solution general accounting
A: Hello student! In order to determine the required sales volume in units we must have enough sales to…
Q: Hi expart Provide correct answer these question
A: Formula for EOQThe EOQ formula is:EOQ= sqrt of (2DS/H)Where:D=15,480 (annual demand)S=96 (ordering…
Q: Provide correct answer accounting questions
A: Step 1: Define Work in progress inventoryMaterials awaiting assembly and sale are referred to as…
Q: Given answer accounting questions
A: Step 1: Define Days' Sales OutstandingThe number of days for which the accounts receivable remain…
Q: Buker Corporation bases it's predetermined overhead rate on the estimated machine hour for the…
A: Step 1: Define Factory OverheadThe factory overhead is an indirect cost that may be allocated to…
Q: Cody Company sells three different categories of tools (small, medium, and large). The cost and…
A: To determine the value of Cody Company's inventory under the lower of cost or market approach, we…
Q: Please provide this question solution accounting
A: Explanation of Return on Assets (ROA): Return on Assets is a crucial financial ratio that measures…
Q: Total Production Cost.
A: Explanation of Batch Costing: Batch costing is a method of cost accounting used when products are…
Q: Need help
A: Step 1: Define Absorption CostingUnder absorption costing fixed manufacturing overhead is also…
Q: account tutor help me
A: To calculate the total value of the company's ending inventory under the lower of cost or market…
Q: Bennett company high and low level solve this accounting questions
A: Step 1: Determine the months with high and low activities. MonthActivityCostHighJune150,000…
Q: Hello tutor please provide correct answer general accounting question
A: Step 1: Define InvestmentsAn investment account appears on the balance sheet under the non-current…
Q: Give me true answer the accounting question
A: Step 1: Define Accounts ReceivableAccounts receivable indicate the credit sales of a company and are…
Q: I need this question correct answer general accounting
A: Step 1: Calculate total direct labor hours in Fabrication Department• Chairs: 1 hour × 3,750 units =…
Q: Bloom Corporation had the following 2025 income statement. Sales revenue $200,000 Cost of goods sold…
A: The first step in preparing the cash flows from operating activities section of the statement of…
Q: Standard Intercompany Accounting?
A: Explanation of Reciprocal Accounting: This is a specialized accounting method used specifically for…
Q: I need help with Heather's tax refund
A: Step 1: Step 2: Step 3: Step 4:
Q: Do fast answer of this question solution accounting
A: Step 1: Define Asset DisposalAfter the expiry of the useful life of a fixed asset, it is sold in the…
Q: req: Account questions. answer both requirements
A: Hello student! Using Absorption Costing, fixed manufacturing overhead will be included as part of…
Q: Aaron Heath is seeking part-time employment while he attends school. He is considering purchasing…
A: Problem AnalysisAaron is evaluating the net present value (NPV) of an investment,…
Q: provide answer for this Subject: general account questions
A: Given Data:Inventory Categories: Cameras, Camcorders, DVDsCost Data:Cameras: $10,280Camcorders:…
Q: Tom Hale was an entertainment executive who had a fatal accident on a film set. Tom's will directed…
A: Step 1: Gross Estate: Personal Assets: $ 1,340,000Cash and Stock:…
Q: ces Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting…
A: Step 1:a. The cost of goods available for sale is calculated as follows: Units (A)Unit Cost…
Q: Please give me answer accounting
A: Step 1: Define DuPont Analysis for Return on InvestmentThe return investment is one of the financial…
Q: What is the gross profit?
A: Net Sales: Subtract sales returns, allowances, and discounts from gross sales to get the net sales,…
Q: Hii please somebody help me with this
A: The question provided does not require any calculations as it is conceptual in nature. Instead, it…
Q: STRICT WARNING: AI ANSWER WILL BE REJECTED & REPORT
A:
Q: What is the depreciable base of the machine on this accounting question?
A: Step 1: Define Depreciable BaseNumerous costs are incurred to get a depreciable asset ready for use…
Q: Harris Fabrics computes it's plantwide predetermined overhead rate annually on the basis of direct…
A: Step 1: Define Overhead RateThe overhead rate helps to calculate the applied overhead cost during…
Q: Provide correct answer the accounting question
A: Step 1: Define Fixed AssetsFixed assets, such as machinery, equipment, and buildings, are used to…
Q: Can you please answer the general accounting question?
A: Step 1: Define Variable CostingThere are two different approaches to costing, absorption costing and…
Q: The Lansing Corporation provides you with the following information for the year ended 12/31/24:…
A: Statement of Cash Flows (Indirect Method) for Lansing Corporation Step-by-Step Calculations1.…
Q: Hello tutor please given answer Accounting not use chart gpt
A: Step 1: Define Book ValueThe book value of a company denotes the value stated on the balance sheet…
Q: Calculate 2.5 hours cost
A: Explanation of Structured Payment System: A structured payment system is a methodical approach to…
Q: 2023 2022 Property Plant and Equipment Land Buildings Equipment and furnishing 6 00055 00025 000…
A: The financial data provided includes a wide range of information that is typically found in a…
Q: What is the amount of the net fixed assets on these general accounting question?
A: Step 1: Define Fixed AssetsFixed assets refer to tangible assets or equipment that a business uses…
Q: calculate variable costing
A: Step 1: Calculate the Contribution Margin per unitUnder variable costing, the unit product cost…
Q: At Jaymes Company, it costs $32 per unit... Please provide answer the general accounting question
A: Step 1: Define Process CostingWith this costing approach, the cost of mass production is calculated…
Q: I need this question correct answer financial accounting
A: Step 1: Define Predetermined Overhead RateThe predetermined overhead rate could be calculated using…
Hello tutor please given answer general accounting question
Step by step
Solved in 2 steps
- At the beginning of 2018, VHF Industries acquired a machine with a fair value of $6,074,700 by issuing a fouryear, noninterest-bearing note in the face amount of $8 million. The note is payable in four annual installmentsof $2 million at the end of each year.Required:1. What is the effective rate of interest implicit in the agreement?2. Prepare the journal entry to record the purchase of the machine.3. Prepare the journal entry to record the first installment payment at December 31, 2018.4. Prepare the journal entry to record the second installment payment at December 31, 2019.5. Suppose the market value of the machine was unknown at the time of purchase, but the market rate of interestfor notes of similar risk was 11%. Prepare the journal entry to record the purchase of the machine.Samos, Inc. purchased certain plant assets under a deferred payment contract. The agreement was to pay $75,000 at year-end for each of the next three years. The plant assets should be valued at present value of a $75,000 annuity for three years discounted at the market interest rate. present value of a $75,000 annuity for three years discounted at the bank prime interest rate. $225,000. $225,000 plus imputed interest.At the beginning of 2021, VHF Industries acquired a machine with a fair value of $6,074,700 by issuing a fouryear, noninterest-bearing note in the face amount of $8 million. The note is payable in four annual installments of $2 million at the end of each year.Required:1. What is the effective rate of interest implicit in the agreement?2. Prepare the journal entry to record the purchase of the machine.3. Prepare the journal entry to record the first installment payment at December 31, 2021. 4. Prepare the journal entry to record the second installment payment at December 31, 2022.5. Suppose the market value of the machine was unknown at the time of purchase, but the market rate of interest for notes of similar risk was 11%. Prepare the journal entry to record the purchase of the machine.
- At the beginning of 2016, VHF Industries acquired a machine with a fair value of $6,074,700 by issuing a fouryear, noninterest-bearing note in the face amount of $8 million. The note is payable in four annual installments of $2 million at the end of each year. Required: 1. What is the effective rate of interest implicit in the agreement? 2. Prepare the journal entry to record the purchase of the machine. 3. Prepare the journal entry to record the first installment payment at December 31, 2016. 4. Prepare the journal entry to record the second installment payment at December 31, 2017. 5. Suppose the market value of the machine was unknown at the time of purchase, but the market rate of interest for notes of similar risk was 11%. Prepare the journal entry to record the purchase of the machine.A company purchases machinery for kshs 800,000 by making a down payment of Shs 150,000 and the remainder to be paid in equal instalments of kshs 150,000 for six years. Calculate the effective rate of interestAn entity purchased a plant asset under a deferred payment contract. The agreement was to pay 10,000 per year for five years. The plant asset is initially measured at ? Choices: a. 50,000 b. 50,000 plus interest c. Present value of 10,000 annuity for five years at an imputed interest. d. Present value of 50,000 for five years at imputed interest.
- GREENTREE COMPANY acquires a new manufacturing equipment on January 1, 20x6, on instalment basis. The deferred payment contract provides for a down payment of P300,000 and an 8-year note for P3,104,160. The note is to be paid in 8 equal annual instalment payments of P388,020, including 10% interest. The payments are to be made on December 31 of each year, beginning December 31, 20x6. The equipment has a cash price equivalent of P2,370,000. GREENTREE’s financial year-end is December 31. Determine the amount of interest expense to be recognized in 20x6. Your answer GREENTREE COMPANY acquires a new manufacturing equipment on January 1, 20x6, on instalment basis. The deferred payment contract provides for a down payment of P300,000 and an 8-year note for P3,104,160. The note is to be paid in 8 equal annual instalment payments of P388,020, including 10% interest. The payments are to be made on December 31 of each year, beginning December 31, 20x6. The equipment has a cash price equfivalent…American Food Services, Incorporated, acquired a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2024. In payment for the $5.3 million machine, American Food Services issued a four-year installment note to be paid in four equal payments at the end of each year. The payments include interest at the rate of 10%. Questions: Prepare the journal entry for American Food Services’ purchase of the machine on January 1, 2024. Prepare an amortization schedule for the four-year term of the installment note. Prepare the journal entry for the first installment payment on December 31, 2024. Prepare the journal entry for the third installment payment on December 31, 2026.A company signed an agreement to rent warehouse space for four years at $40,000 per year, payable at the beginning of each year. Assuming an annual interest rate of 6% is appropriate, the present value of an ordinary annuity is 3.46511 × 40,000 = $138,604, and the present value of an annuity due is 3.67301 × $40,000 = $146,920. At which amount should the rental obligation be recorded? $169,600 $160,000 $138,604 O $146,920
- Telephone Limited signed a contract with Machinery Leasing Company at 1st January 2020 to lease a machine. The agreement consists in 10 equal annual payments of $300,000 at the beginning of each year with an interest rate of 15%. The yearly rental payment includes $30,000 of executory costs related to insurance on the machine. The executory costs of $30,000 are paid to the lessor each year. There is an option to purchase the machine at the end of the lease term for $50,000. The machine has an estimated useful life of 14 years and a guaranteed residual value of $20,000. Both companies adopt straight-line depreciation method for all items of PPE. Consider a PVIF (n=10, i=15%) of 0.2472 and PVIFA (n=10, i=15%) of 5.0188. The balance day for Telephone Limited and Machinery Leasing Company is 31 of December. Required(Round all numbers to the nearest dollar) a) Discuss the nature of this lease to Telephone Limited. b) Discuss the nature of this lease to Machinery Leasing Company. c)…On January 1, 2020, Bacarra Company leased an asset for a term of six years. Annual rentals of P500,000 is payable every yearend. The cost of the leased asset is P2,100,000. Initial direct costs paid by Bacarra totaled P6,360. The asset will revert to Bacarra at the end of the lease term, when its residual value would amount to P100,000. Assume it is a direct finance lease with an implicit rate of 12% and the residual value is guaranteed, how much is the interest income for 2020?American Food Services, Inc., acquired a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2021. In payment for the $4 million machine, American Food Services issued a four-year installment note to be paid in four equal payments at the end of each year. The payments include interest at the rate of 10%.Required:1. Prepare the journal entry for American Food Services’ purchase of the machine on January 1, 2021.2. Prepare an amortization schedule for the four-year term of the installment note.3. Prepare the journal entry for the first installment payment on December 31, 2021.4. Prepare the journal entry for the third installment payment on December 31, 2023.