On January 1, 2024, Byner Company purchased a used tractor. Byner paid $2,000 down and signed a noninterest-bearing noterequiring $29,000 to be paid on December 31, 2026. The fair value of the tractor is not determinable. An interest rate of 10% properlyreflects the time value of money for this type of loan agreement. The company's fiscal year-end is December 31.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)Required:1. Prepare the journal entry to record the acquisition of the tractor.2. How much interest expense will the company include in its 2024 and 2025 income statements for this note?3. What is the amount of the liability the company will report in its 2024 and 2025 balance sheets for this note?Complete this question by entering your answers in the tabs below.Req 1Req 2 and 3No1Answer is complete but not entirely correct.Prepare the journal entry to record the acquisition of the tractor.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not roundintermediate calculations. Round your answers to the nearest whole dollars.Transaction1General JournalTractorDiscount on notes payableCashNotes payable< Req 1✓✓Req 2 and 3>Debit23,7885,212 XCredit2,000✔29,000 1. The equipment was purchased on account for $27,000. Credit terms were 2/10, 1/30. Payment was made within the discountperiod and the company records the purchases of equipment net of discounts.2. Connors gave the seller a noninterest-bearing note. The note required payment of $29,000 one year from date of purchase. Thefair value of the equipment is not determinable. An interest rate of 12% properly reflects the time value of money in this situation.3. Connors traded in old equipment that had a book value of $7,000 (original cost of $16,000 and accumulated depreciation of$9,000) and paid cash of $24,000. The old equipment had a fair value of $3,300 on the date of the exchange. The exchange hascommercial substance.4. Connors issued 1,000 shares of its no-par common stock in exchange for the equipment. The market value of the common stockwas not determinable. The equipment could have been purchased for $26,000 in cash.Required:For each of the above situations, prepare the journal entry required to record the acquisition of the equipment.Note: Use tables, Excel, or a financial calculator. If no entry is required for a transaction/event, select "No journal entry required" inthe first account field. Round your answers to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 andPVAD of $1)No1234Transaction1234Equipment - newAccounts payableEquipment - newNotes payableEquipment - newLoss on exchange of assetsAccumulated depreciationCashEquipment - oldEquipment - newCommon stockAnswer is not complete.General Journal››>>✓Debit27,000 X27,000Credit27,000 X27,000 X

As per IFRS, 'Financial Instruments' financial liabilities should be recorded initially at their…

Required: 1. Prepare the journal entry to record the acquisition of the tractor. 2. How much interest expense will the company include in its 2024 and 2025 income statements for this note? 3. What is the amount of the liability the company will report in its 2024 and 2025 balance sheets for this note? Complete this question by entering your answers in the tabs below. Req 1 No 1 Req 2 and 3 Prepare the journal entry to record the acquisition of the tractor. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollars. Answer is complete but not entirely correct. Transaction 1 General Journal Tractor Discount on notes payable Cash Notes payable < Req 1 Req 2 and 3 > Debit 23,788 5,212 X Credit 2,000 29,000

Required: 1. Prepare the journal entry to record the acquisition of the tractor. 2. How much interest expense will the company include in its 2024 and 2025 income statements for this note? 3. What is the amount of the liability the company will report in its 2024 and 2025 balance sheets for this note? Complete this question by entering your answers in the tabs below. Req 1 No 1 Req 2 and 3 Prepare the journal entry to record the acquisition of the tractor. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollars. Answer is complete but not entirely correct. Transaction 1 General Journal Tractor Discount on notes payable Cash Notes payable < Req 1 Req 2 and 3 > Debit 23,788 5,212 X Credit 2,000 29,000

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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QUESTION 4 Cullumber Company owns delivery equipment that cost $53,800 and has accumulated depreciation of $27,300 as of July 30, 2020. On that date, Cullumber disposes of this equipment. For parts b- d below, enter D for debit or C for credit in the first box and the amount in the second box. a. What is the net book value of the equipment on July 30, 2020? b. Assume Cullumber scraps the equipment as having no value on July 30. What is the gain or loss, if any, that Cullumber should recognize? c. Assume Cullumber sells the equipment for $37,200 cash on July 30. What is the gain or loss, if any, that Cullumber should recognize? d. Assume Cullumber sells the equipment for $18,000 cash on July 30. What is the gain or loss, if any, that Cullumber should recognize?
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Required Information (The following information applies to the questions displeyed below Karane Enterprises, a calendar-year manufacturer besed in College Station, Texas, began business in 2020. in the process of setting up the business, Karane has acquired verlous types of assets. Below is a list of assets acquired during 2020: Date Placed in Service Office furnitures 280,000 02/03/2020 1,586, 000 07/22/2020 Asset Cost Machinery Used delivery truck 66,000 08/17/2020 "Not considered a luxury automobile. During 2020, Karane was very successful (and had no 8179 imitations) and decided to acquire more assets In 2021 to increase Its production capacity. These are the assets acquired during 202t Date Placed in Service Asset Computers and information system Luxury autot Assembly equipment Storage building Cost $ 426,008 03/31/2021 86,500 05/26/2021 1,330,000 e8/15/2021 80e,eee 11/13/2021 fused 100% for business purposes. Karane generated taxable income in 2021 of $1,765,000 for purposes of…
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From page 7-1 of the VLN, acquisition cost would NOT include: A. Purchase price. B. Transportation cost to get the asset ready to be used. C. Sales taxes. D. Cost incurred to operate the asset.
Question Content Area A building with an appraisal value of $130,876 is made available at an offer price of $155,610. The purchaser acquires the property for $39,936 in cash, a 90-day note payable for $25,942, and a mortgage amounting to $59,561. The cost of the building to be reported on the balance sheet is a. $115,674 b. $125,439 c. $155,610 d. $130,876
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