Sage Hill Corporation purchased a truck by issuing an $78,600, four-year, non-interest-bearing note to Equinox Inc. The marketinterest rate for obligations of this nature is 12%.Click here to view Table A.2- PRESENT VALUE OF 1Calculate the purchase price using any of the three methods (tables, financial calculator, or Excel). (Round factor values to 5 decimalplaces, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275.)Purchase price $Prepare the journal entry to record the truck purchase. (Credit account titles are automatically indented when the amount is entered. Donot indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before creditentry.)Account Titles and ExplanationTruck49,952Note ReceivableDebit78,600Credit78,600

The journal entry is the format under which the business entity identifies, evaluates, and analyses…

Sage Hill Corporation purchased a truck by issuing an $78,600, four-year, non-interest-bearing note to Equinox Inc. The market interest rate for obligations of this nature is 12%. Click here to view Table A.2- PRESENT VALUE OF 1 Calculate the purchase price using any of the three methods (tables, financial calculator, or Excel). (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.) Purchase price $ Prepare the journal entry to record the truck purchase. (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 Truck 49,952 Note Receivable Debit 78,600 Credit 78,600

Sage Hill Corporation purchased a truck by issuing an $78,600, four-year, non-interest-bearing note to Equinox Inc. The market interest rate for obligations of this nature is 12%. Click here to view Table A.2- PRESENT VALUE OF 1 Calculate the purchase price using any of the three methods (tables, financial calculator, or Excel). (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.) Purchase price $ Prepare the journal entry to record the truck purchase. (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 Truck 49,952 Note Receivable Debit 78,600 Credit 78,600

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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