Pronghorn Inc. bought an internet domain name by issuing a $234,000, 6-year, non-interest-bearing note to Ti-Mine Corp. with an effective yield of 10%. The note is repayable in 6 annual payments of $39,000 made at the end of each year. Click here to view Table A.4- PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 Prepare the journal entry to record the purchase of the intangible asset. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 5,275. 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 debit entry before credit entry.) Account Titles and Explanation Debit Credit

Pronghorn Inc. bought an internet domain name by issuing a $234,000, 6-year, non-interest-bearing note to Ti-Mine Corp. with an effective yield of 10%. The note is repayable in 6 annual payments of $39,000 made at the end of each year. Click here to view Table A.4- PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 Prepare the journal entry to record the purchase of the intangible asset. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 5,275. 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 debit entry before credit entry.) Account Titles and Explanation Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.

Question

Pronghorn Inc. bought an internet domain name by issuing a $234,000, 6-year, non-interest-bearing note to Ti-Mine Corp. with an
effective yield of 10%. The note is repayable in 6 annual payments of $39,000 made at the end of each year.
Click here to view Table A.4 - PRESENT VALUE OF AN ORDINARY ANNUITY OF 1
Prepare the journal entry to record the purchase of the intangible asset. (Round factor values to 5 decimal places, e.g. 1.25124 and final
answer to O decimal places, e.g. 5,275. 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 debit entry before credit entry.)
Account Titles and Explanation
Debit
Credit

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