User Account

All Pages

Amount of the liability the company will report

Assignment Help Accounting Basics
Reference no: EM13882406

1.On January 1, 2013, Byner Company purchased a used tractor. Byner paid $5,000 down and signed a noninterest bearing note requiring $25,000 to be paid on December 31, 2015. The fair value of the tractor is not determinable. An interest rate of 10% properly reflects the time value of money for this type of loan agreement. The company's fiscal year end is December 31.

Required:
1. Prepare the journal entry to record the acquisition of the tractor. Round computations to the nearest dollar.
2. How much interest expense will the company include in its 2013 and 2014 income statements for this note?
3. What is the amount of the liability the company will report in its 2013 and 2014 balance sheets for this note?

Reference no: EM13882406

Questions Cloud

Describe why it is a strength or weakness. : The following list presents statements regarding the expenditure processes. Each statement is separate and should be considered to be from a separate company. For each statement, determine whether it is an internal control strength or weakness, th..
Key attributes of a security make it a suitable investment : What key attributes of a security make it a suitable investment for a bank?
List the objectives that banks have for buying securities : List the objectives that banks have for buying securities. Explain the motive for each.
What is the option in a callable agency bond : What is the option in a callable agency bond? What impact does the call deferment period have on a callable bond's promised yield? What is the primary advantage of a discount callable bond versus one trading at par?
Amount of the liability the company will report : 1.On January 1, 2013, Byner Company purchased a used tractor.
Dodd frank act alter the behavior of banks : How did the provisions of Section 939A of the Dodd Frank Act alter the behavior of banks in managing their investment portfolios?
Why might mutual funds be attractive to banks : Explain how the composition of a small community bank's investment portfolio differs, in general, from the composition of a large bank's portfolio. Why might mutual funds be attractive to banks?
Record the acquisition of the land and the building : The building was completed on November 2, 2013, at a cost of $6,000,000. Xilon paid $4,000,000 in cash and the remainder was paid by the city of Monrovia.
Frequency of impaired glucose tolerance in patients : Determine the frequency of impaired glucose tolerance in patients with liver cirrhosis due to hepatitis C. Which Material and methods are used.Key words should be used for the research are : Hepatitis C, liver cirrhosis

Reviews

Write a Review

Accounting Basics Questions & Answers

  Which one of the following is not a characteristic

which one of the following is not a characteristic generally evaluated in ratio

  Find the standard price per kilogram for raw material

The material price variance was 1370 favorable and find the standard price per kilogram for raw material?

  What portion of consolidated retained earnings is assigned

What portion of consolidated retained earnings is assigned to the non-controlling interest in the consolidated balance sheet.

  The comparative balance sheets for 2013 and 2012 are given

the comparative balance sheets for 2013 and 2012 are given below for surmise company. net income for 2013 was 58

  During the past month the company purchased 6000 pounds of

barberry inc. makes one product and has set the following standards for materials and labordirect materials direct

  A company originally recorded prepaid rent as of the end

a company originally recorded prepaid rent. as of the end of the accounting year part of this is no longer prepaid. if

  Overhead application working backward the towson

overhead application working backward the towson manufacturing corporation applies overhead on the basis of machine

  How much interest expense will be recorded for the period

On November 1, 2015, Archangel Services issued $200,000 of 10-year bonds with a stated rate of 3%. The bonds were sold at discount for $191,000, and make semiannual payments on April 30 and October 31.

  Identify at least two accounting errors that could occur

business start-ups for hi-tech - stars investments bulldiscuss how the financial crisis in 2008 impacted the stock

  Assume that abdel business corporation is purchasing new

question in accounting1.assume that abdel business corporation is purchasing new equipment for 350000 at the beginning

  Recent annual report for a publicly traded company

Browse the Internet to acquire a copy of the most recent annual report for a publicly traded company.

  Heather smith is considering a bond investment in locklear

heather smith is considering a bond investment in locklear airlines. the 1000 par value bonds have a quoted annual

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd