Create the journal entry at the date of purchase

Assignment Help Accounting Basics

Reference no: EM131896168

Problem

Kingbird Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2017, to expand its production capacity to meet customers' demand for its product. Kingbird issues a(n) $1, 056,000, 5-year, zero-interest-bearing note to Central Michigan for the new equipment when the prevailing market rate of interest for obligations of this nature is 11%. The company will pay off the note in five $211, 200 installments due at the end of each year over the life of the note.

Required: Prepare the journal entry at the date of purchase.

Reference no: EM131896168

Questions Cloud

Identify and explain the main sections of the annual report : Write a 2-3 page assignment on Walmart annual report. Identify and explain the main sections of the annual report

Was the period after the fall of rome a dark age : What factors actually led to the end of this period? this needs to be 100 words or more (please provide the source)

Urban educational performance outcomes : Explain the poverty paradox and its pernicious effect on urban educational performance outcomes.

What claim might delaney make against former employer : Reginald Delaney managed a Taco Time restaurant in Portland, Oregon. Some of his customers told Mr. Ledbetter, the district manager.

Create the journal entry at the date of purchase : Kingbird Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2017. Create the journal entry at the date of purchase.

Ethical conduct of law enforcement officers : What are the boundaries of Legal aspects of ethics and ethical conduct of law enforcement officers?

What aspect of the strategy would be most difficult to : From a perspective, analyze these specific components as related to the strategy indentified in Now would value be generated by following the strategy?

Differences between quoted citations and paraphrased : What do you notice about the differences between quoted citations and paraphrased passages in-text?

Did nationwide violate public policy by firing novosel : Nationwide Insurance Co. circulated a memorandum asking all employees to lobby in favor of a bill that had been introduced in the Pennsylvania House.

User Account

All Pages