The company ‘El Camion’ sells machinery. It sells large tonnage trucks in two forms:1.- A cash instalment of 30 million plus 6 half-yearly instalments of 50 million each.2.- Cash payment of $299,518,114. This company gave mining company ‘Los 33’ a credit on 01-07-2009. In the AMORTIZED COST table (IFRS 9) of this sale, the END BALANCE for the first period amounts to $228,007,935.It is requested:1) Make the opening accounting entry for ‘El Camion' for the sale.2) Make the development table in EXCEL spreadsheet of the amortised cost.3) Make the accounting entries for the first payment.4) After making the payment of the 2nd instalment, ‘Los 33’ inform ‘El Camion’ that they have problems to pay the rest of the instalments. They estimate that they will only be able to pay 40% of each remaining instalment. Make the accounting entry for this fact.

The company ‘El Camion’ sells machinery. It sells large tonnage trucks in two forms:1.- A cash instalment of 30 million plus 6 half-yearly instalments of 50 million each.2.- Cash payment of $299,518,114. This company gave mining company ‘Los 33’ a credit on 01-07-2009. In the AMORTIZED COST table (IFRS 9) of this sale, the END BALANCE for the first period amounts to $228,007,935.It is requested:1) Make the opening accounting entry for ‘El Camion' for the sale.2) Make the development table in EXCEL spreadsheet of the amortised cost.3) Make the accounting entries for the first payment.4) After making the payment of the 2nd instalment, ‘Los 33’ inform ‘El Camion’ that they have problems to pay the rest of the instalments. They estimate that they will only be able to pay 40% of each remaining instalment. Make the accounting entry for this fact.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 63P

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