Problem 6: Carmen Corporation uses the installment sales method. On January 1, 2020, The corporation sold an equipment for P2,000,000 with the following terms: 30% down payment on the date of sale and the balance is payable in four equal annual installments every December 31. The cost of the equipment is P1,200,000. Ignore the concept of time value of money. Requirement: Provide the journal entries for 2020 and 2021. Show all computations in good form.
Q: On January 1, 2024. Byner Company purchased a used tractor. Byner paid 55,000 down and signed a…
A: The question is related to Acquisition Journal Entry of Tractor. The details are given as under Down…
Q: Green Industries purchased a machine from Cyan Corporation on October 1, 2021. In payment for the…
A: Calculate the monthly interest rate.
Q: On January 1, 2021, the Montgomery Company agreed to purchase a building by making six payments. The…
A: Step 1: 1. Compute the amount at which the cost of the building should be recorded as follows:
Q: On January 1, 2023, Martineau Corp. issued a 5-year, 4% installment note payable for $129,000 to…
A: Notes are also known as promissory notes which are a sort of debt instrument stating a promise to…
Q: On September 1, 2022, Jones Manufacturing purchase equipment from CAT. Jones agreed to pay $25,000…
A: Lets understand the basics. When asset is purchased and amount if going to be paid in the more than…
Q: On December 31, 2020, Faital Company acquired a computer from Plato Corporation by issuing a…
A: Present value: Present value is the current value of a future amount that is to be received or…
Q: At the beginning of 2024, VHF Industries acquired a machine with a fair value of $3,169,870 by…
A: Solution 1:Interest rate = 10% Solution 2 to 4:Refer step 2 Solution 5:Fair value = $3,239,720 for…
Q: on december 31, 2020, bones corporation sold an old machine, the terms of the sale were as follows:…
A: Annuity: The fixed amount paid or received in equal time periods is referred to as annuity.
Q: On April 19, 2021, Millipede Machinery sold a tractor to Thomas Hartwood, accepting a note promising…
A: Note receivable: Note receivable refers to a written promise received by the creditor from the…
Q: On December 31, 2020, ABC Co. purchased a machine under a deferred payment contract where it is…
A: Present value of future payment can be calculated by applying the appropriate rate of interest or…
Q: 1) A certain property was offered on an instalment basis wherein the buyer needs to pay 15% of the…
A: It is a loan amortization question, however the amortization schedule is unconventional. It requires…
Q: On December 31, 2020, Pearl Limited acquired a machine from Pronghorn Corporation by issuing a…
A:
Q: On April 1, 2028, A Company issued a P 9,000,000 non-interest-bearing note due March 31, 2031, for a…
A: In the above question, there are 2 separate questions, the first one is relating to Notes and 2nd is…
Q: Give the journal entries on May 1, 2020, December 31, 2020 and May 1, 2021. Answer the following:…
A: Working notes:- Cost of 5 trucks payable…
Q: On January 1, 2021, Hodge Beanery received $8,000 from the Kennedy Company in exchange for a coffee…
A: Since requirement is not given in the question, I am calculating deferred revenue to be recognized…
Q: The contract rec much interest w places. Leave n Payment number 0 1 2 3 4 6 7 599
A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…
Q: ACME Inc. issued a 10 year, 5%, $340,000 note payable to finance the construction of a new building…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: Subject :-Accounting A financial institution gives a loan to a manufacturing company to buy…
A: Time value of money is the concept that is widely used by the companies, individuals to determine…
Q: On December 31, 2022, at what amount should the company report as the liability for this land? On…
A: The original question provides a scenario where ABC Company buys three hectares of land for P800,000…
Q: On January 2, 2020, Brook Company acquired machinery by Issuing a 5%, $350,000 note due in 5 years…
A: Current portion of liability means the obligation that an entity would settle within a year and…
Q: The Great Company started the construction of a building on March 1, 2020 and finished it on June…
A: Carrying value is the value of a physical asset at the end of a particular year after the adjustment…
Q: own payment: 20% nstallment sales: P545, 000 in 2020, P785,000 in 2021, and P968,000 in 2022 Markup…
A: Realized gross profit on instalment basis is equal to the amount of cash collected X gross profit %…
Q: Prepare the journal entry for purchase of equipment. Prepare the journal entries for the first two…
A: To calculate the amount of each installment payment, we can use the present value of an annuity…
Q: On January 1, 2021, Dreamlover Corporation purchased equipment from Daydream Company for P3,600,000.…
A: Present value refers to the current value of all the cash flows which is to be received in the…
Q: On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to…
A: I am answering the first question as per bartleby policies. Please re-submit the remaining questions…
Q: Murphy Company purchased a new machine for $120,000 on December 31, 2020. They obtained a loan
A: In this problem loan amount is $ 120,000 tobe repaid in 5 equal installments…
Q: Answer the following questions. a. On May 1, 2020, Goldberg Company sold some machinery to Newlin…
A: Hey, since there are multiple requirements posted, we will answer the first three requirements. If…
Q: equal installments of $19,800 payable each December 31 e price. answer is partially correct. journal…
A: Answer : Date Account title Dr. Cr. Dec.31,2024 Equipment a/c Dr. $116,615 Discount on…
Q: Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles. The snowmobiles were delivered on…
A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: On February 5, 2020, Diamond Company purchased a new machine on a deferred payment basis. A down…
A: Solution: Capitalized cost of machine = Cash equivalent price of machine + Installation cost
Q: On December 30, 2021, Jack company purchased an aircraft from Jill Co. in exchange for a noninterest…
A: Answer to Question: Cost of the Machine is the Present Value of Non Interest bearing Note…
Q: Valley Produce received $50,000 in vendor financing at 7.8% compounded semiannually for the purchase…
A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…
Q: At the beginning of 2021 VHF Industries acquired a machine with a fair value of 7,985,420 by issuing…
A: Note payable is the liability which increases due to the purchases made on credit.
Q: On January 1, 2020, South Company purchased five delivery trucks for P 10,000,000 from West…
A: If payments terms on acquisition of property plant and equipment are beyond the normal credit terms…
Q: American Food Services, Incorporated, acquired a packaging machine from Barton and Barton…
A: A note payable is a formal commitment or written pledge made by a borrower to repay a lender a…
Q: On January 1, 2020, Mya & Co, sold a machinery and immediately leases it back for a period of 4…
A: An agreement of contract that is prepared to transfer the right to use the resources for a…
Q: American Food Services, Incorporated, acquired a packaging machine from Barton and Barton…
A: A note payable is a formal commitment or written pledge made by a borrower to repay a lender a…
Q: Acruni Co. had the following loans in place at the beginning of 2019.…
A: The original cost of an asset takes into consideration all the items that can be attributed to its…
Q: On January 1, 2011, ABC Corporation bought a machine on P 600,000, 14% , 3-year, note payable. The…
A: Ans. B. P 600,000
Q: On December 31, 2020 you McCormick Ltd. Sells manufacturing equipment to a customer on the following…
A: Journal- A journal keeps track of all of an organization's business transactions. A company may…
Q: Prepare any necessary adjusting entries relative to depreciation (use straight-line) and…
A: Journal Entry is the primary step to record the transaction in the books of accounts. The increase…
Q: On January 1, 2021, the Montgomery Company agreed to purchase a building by making six payments. The…
A: Answer: Part 1: PV factor for deferred annuity = PVA factor, n = 6, i = 12% - PVA factor, n = 3, i =…
Q: (e) On December 31, 2015, Malton Company acquired a computer from Hamilton Corporation by issuing a…
A: Present value is the current value of a future amount that is to be received or paid out. Future…
![Problem 6: Carmen Corporation uses the installment sales method. On January 1,
2020, The corporation sold an equipment for P2,000,000 with the following terms:
30% down payment on the date of sale and the balance is payable in four
equal annual installments every December 31. The cost of the equipment is
P1,200,000. Ignore the concept of time value of money.
Requirement: Provide the journal entries for 2020 and 2021. Show all computations in
good form.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F914ce83a-466b-4321-8305-78951a83cf46%2F7d35b79e-0889-4a26-b975-316fd4acf0b4%2Fpor5iu_processed.png&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- 0 Required information [The following information applies to the questions displayed below.] On January 1, 2024, Evanston Corporation borrowed $10 million from a local bank to construct a new building over the next three years. The loan will be paid back in three equal installments of $3,880,335 on December 31 of each year. The payments include interest at a rate of 8%. 3. Use amounts from the amortization schedule to record each installment payment. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answer in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000.).) View transaction list Journal entry worksheet 1 2 3 Record the payment of first annual installment on the note payable. Note: Enter debits before credits. Date December 31, 2024 General Journal Debit Credit Record entry Clear entry View general journalOn January 1, 2020, Bing Company acquired equipment on credit. The terms were $8,000 cash down payment plus payments of $6,000 on January 1 for each of the next four years. The implicit interest rate was 6%. The equipment’s list price was $30,000. Additional costs of $2,000 were incurred to install the equipment. Determine the value at which Ling should report the acquired asset. Show your calculations. For any measurement involving present value concepts, provide your calculations.Concord Corporation purchased a computer on December 31, 2024, for $115,500, paying $33,000 down and agreeing to pay the balance in five equal installments of $16,500 payable each December 31 beginning in 2025. An assumed interest rate of 10% is implicit in the purchase price. Prepare the journal entry at December 31, 2025, to record the payment and interest (effective-interest method employed). (Round answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when 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.) Date Account Titles and Explanation c. 31, 2025 Interest Expense Notes Payable Cash Discount on Notes Payable Debit 6600 16,500 Credit 6600 16500 Prepare the journal entry at December 31, 2026, to record the payment and interest (effective-interest method employed). (Round answers to 2 decimal places, e.g. 52.75.…
- 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 $4.9 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 12%. Required: 1. Prepare the journal entry for American Food Services purchase of the machine on January 1, 2024. 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, 2024. 4. Prepare the Journal entry for the third Installment payment on December 31, 2026. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) · Complete this question by entering your answers in the tabs below. Req 2 Req 1 3 and 4 Prepare an amortization schedule…On December 31, 2019, Entity A enters into a contract with Customer B to transfer a license for a fixed fee of P100,000 payable as follows: • 20% is payable upon signing of contract. • 80% is represented by a note receivable collectible in 4 equal annual installments starting December 31, 2020. The appropriate discount rate is 12% (Use PV factor = 3.0375) The license provides Customer B the right to use Entity A's patented processes. Customer B continues to operate using its trade name and has the discretion of developing a new product name for the products it will produce using the patented processes. The license does not explicitly require Entity A to undertake activities that will significantly affect the intellectual property to which Customer C has rights. Neither does Customer B expect that Entity A will undertake such activities. Entity A grants the license to Customer B on December 31, 2019. How much revenue from the franchise contract will Entity A recognize in 2019?Murphy Company purchased a new machine for $120,000 on December 31, 2020. They obtained a loan at the bank to finance the purchase. The terms of the loan were: 5 years, 5% interest, annual payments of principal and interest on December 31 of each year. a. Using the table provided, calculate the annual payment on the loan. b. Record the purchase of the new machine on December 31, 2020. c. Record the loan payment on December 31, 2021. d. Record the loan payment on December 31, 2022. d. Calculate the loan balance for December 31, 2022 after the payment. a. Using the table below, calculate the annual payment on the loan. Loan Amount…
- g. On October 1, 2023, Equipment B was acquired with a down payment of $4,000 and the remaining payments to be made in 10 annual installments of $4,000 each beginning October 1, 2024. The prevailing interest rate was 8%. Required: Supply the correct amount for each answer box on the schedule. Note: Round your intermediate calculations and final answers to the nearest whole dollar. THOMPSON CORPORATION Fixed Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2023, and September 30, 2024 Assets Acquisition Date Cost Residual Depreciation Method Estimated Life in Years Depreciation for Year Ended 9/30 2023 2024 Land A 10/1/2022 $ 65,000 N/A not applicable N/A N/A N/A Building A 10/1/2022 Land B 10/2/2022 Building B Under construction Donated Equipment 10/2/2022 Equipment A 10/2/2022 747,500 $47,500 85,400 210,000 to date 16,000 99,000 N/A Straight-line not applicable 50 $ 14,000 $14,000 N/A N/A N/A Straight-line 30 0 2,000 9,000 200% Declining balance 10 3,200 2,560…On January 1, 2020, Tamia & Co, sold a machinery and immediately leases it back for a period of 4 years. Remaining useful life of the machinery is 10 years. Selling price is P3,000,000. Carrying amount of the machinery is P2,250,000. Annual rental is P400,000 payable every December 31, starting December 31, 2020. Implicit rate is 10% and PV factor for ordinary annuity at 10% for 4 periods is 3.169865. If the fair value of the sold and leased asset is P3,200,000, what amount of gain/loss related to the right transferred shall be recognized by the seller-lessee? a. Zero b. 950,000 c. 435,796 d. 514,204PINAUTANG started constructing a building for its own use in January 1, 2020. PINAUTANG provided the following information related to the construction: Outstanding loans of the Company at January 1, 2020: Interest Interest Rate Amount of loan Cost 15% P10,000,000 P 1,500,000 5% 30,000,000 1.500.000 Total P40,000,000 P3.000.000 On January 1, 2020, PINAUTANG also borrowed P5,000,000 at 12% per annum, to specifically fund its expected construction on March 1, 2020. January 1, 2020 P1,000,000 May 31, 2020 3,000,000 July 1, 2020 8.000.000 November 31.2020 6.000.000 December 31. 2020 2.000.000 How much is the total cost of the constructed asset as of December 31,2020? The amount of interest expense taken to profit or loss for 2020 is?
- Tamarisk Corporation purchased a computer on December 31, 2024, for $138,600, paying $39,600 down and agreeing to pay the balance in five equal installments of $19,800 payable each December 31 beginning in 2025. An assumed interest rate of 9% is implicit in the purchase price. (a) Your answer is partially correct. Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when 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.) Date :. 31, 2024 Account Titles and Explanation Equipment Discount on Notes Payable Notes Payable Cash Debit 116615.00 21985.00 Credit 0 99000 39600Hogg Company purchased a machine from Chump Corporation on October 31, 2020. In payment for the $570,000 purchase, Hogg issued a one-year installment note to be paid in equal monthly payments of $50,664 at the end of each month. The payments include interest at the rate of 12%. The amount of interest expense that Hogg will report in its income statement for the year ended December 31, 2020, is: O $10,950 O $5,064 O $5,700 $11,520Prepare all journal entries and adjusting journal entries necessary to record the information below for year 2022: On November 15, 2022, WTG purchased a patent for $49,500. It used an installment loan to purchase the patent. Payments are due on May 15 and November 15 of every year (so the first payment is due May 15 next year) for the next 5 years. The interest rate is 7%. See amortization table below: ■ Patent Loan Amortization Principal Interest Years Payments/year Payment Date 5/15/23 11/15/23 5/15/24 11/15/24 5/15/25 11/15/25 5/15/26 11/15/26 5/15/27 11/15/27 $49,500 7% 5 2 5,952 Interest Principal Payment Balance 49,500 5,952 45,281 5,952 40,913 5,952 36,393 5,952 5,952 5,952 5,952 5,952 5,952 5,952 1,733 4,219 1,585 4,367 4,520 4,678 4,842 941 5,011 765 5,187 584 5,368 396 5,556 201 5,751 1,432 1,274 1,110 31,715 26,873 21,862 16,675 11,307 5,751 0
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)