Alden trucking company isreplacing part of their fleet of

Assignment Help Accounting Basics

Reference no: EM13615023

Alden Trucking Company isreplacing part of their fleet of trucks by purchasing them under anote agreement with Kenworthy on January 1, 2009. The noteagreement will require $10 million in annual payments starting onDecember 31, 2009 and continuing for a total of five years (finalpayment December 31, 2013). Kenworthy will charge Alden themarket interest rate of 10% compounded annually.

1. How muchwill Alden record as a debit to their equipment account and as acredit to their notes payable account on January 1,2009?

2. How much ofthe first $10 million payment on December 31, 2009 isinterest?

3. What is theremaining obligation on January 1, 2010 after the first payment hasbeen made?

Reference no: EM13615023

Questions Cloud

Fausnaught corporation has two major business segments : fausnaught corporation has two major business segments -retail and wholesale. in october the retail business segment

On january 1 2001 sunshine corporation had 40000 shares : on january 1 2001 sunshine corporation had 40000 shares of10 par value common stock issued and outstanding. all

A car is driven at constant speed over a circular hill and : a car is driven at constant speed over a circular hill and then into a circular valley with the same radius. at the top

What is the tangential acceleration at this point what is : an automobile moves on a circular track of radius 1.06 km. it starts from rest from the point x y 1.06 km 0 km and

Alden trucking company isreplacing part of their fleet of : alden trucking company isreplacing part of their fleet of trucks by purchasing them under anote agreement with

Use the binomial table to find the probability of rejecting : a two-stage clinical trial is planned for for testing h0 p0.10 versus ha pgt0.10 where p is the proportion of

Consider compton scattering event in which the scattering : consider compton scattering event in which the scattering photon has an energy of 120 kev and the recoiling electron

Georges grandmother promises to give him 1000 atthe end of : a. on january 2 2009 hill company borrowed 10000 from bankthree. the loan was to be repaid in equal principal

A tugboat captain also sees the submarine fire the : a projectile is fired from a submarine traveling horizontally at 20 ms with respect to the water as shown in the figure

User Account

All Pages