Prepare the entry to record the sale of Splish Brothers' equipment and receipt of the note. (Round answers to 0 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.)
Prepare the entry to record the sale of Splish Brothers' equipment and receipt of the note. (Round answers to 0 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
10, please read the question carefully and follow the instructions. thanks
Transcribed Image Text:On January 1, Splish Brothers Inc. sold used equipment with a cost of $16,500 and a carrying amount of $2,500 to Culver Corp. in
exchange for a $5,500, three-year non-interest-bearing note receivable. Although no interest was specified, the market rate for a loan
of that risk would be 9% and assume that Splish Brothers 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)
Prepare the entry to record the sale of Splish Brothers' 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
Debit
Credit
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