Determine the Assets net book value on January

Assignment Help Accounting Basics
Reference no: EM132836774

Problem - On January 1, 2020, TPM Inc. acquires a piece of equipment for a list price of $300,000. It pays $20,000 immediately and writes a note for the remainder. Annual interest of 3% is due every December 31st, and the principal of the note is payable in 6 years. TPM's incremental borrowing rate is 6%, while the seller's incremental borrowing rate is 7%. TPM is a public company. It depreciates its equipment using the diminishing balance method at 15%. The equipment's residual value is $40,000 at the end of its useful life.

Required -

1) Prepare all required journal entries for the years 2020 and 2021.

2) Determine the Asset's net book value on January 1, 2024.

3) Determine the note payable carrying value on January 1, 2024.

Reference no: EM132836774

Questions Cloud

What is the importance of scaffolding in teaching concepts : How do word recognition, phonemic awareness, and print concepts each relate to fluency? What is the importance of scaffolding in teaching these concepts.
Calculate the amount of money that will accumulate : Suppose Leslie moves her money into an account that pays 7 percent or one that pays 9 percent. Rework part (a) using 7 percent and 9 percent.
What are three strategies that are discussed in the article : What are three strategies that are discussed in the article? How will you implement the strategies/ideas (from the article) when working with children?
What is the company total book value of debt : What is the company's total book value of debt? The total market value? What is your best estimate of the aftertax cost of debt now?
Determine the Assets net book value on January : On January 1, 2020, TPM Inc. acquires a piece of equipment for a list price of $300,000. Determine the Asset's net book value on January 1, 2024
What type of leaders were they : Develop a profile of each of the leaders using the leadership theories studied in class and those found through external research. What type of leaders were.
Post the october transactions to the general journal : Post the adjusted transactions to the general journal. Display a separate general journal including the adjusted transactions. Post the October transactions
How can you support learning and innovation : How can you support learning and innovation and build a culture of growth within your organization? How will you attend to the key attributes of collaborative.
Information on human gene in literature : There are small differences in names of genes that help to clue us in when we are looking at information on a human gene in literature.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare an operating budget for the first quarter

ACT507 ACCOUNTING FOR MANAGERS ASSIGNMENT. Prepare an operating budget for the first quarter with the following schedules: Sales budget

  Calculate the overhead charges chargeable to the job

The production department of a factory furnishes the following information for the month of March, 2007. For an order executed by the department during.

  How many payments can Mel expect to receive

Mel expects to earn 7.23 percent per year. How many payments of 16,100 dollars can Mel expect to receive if his first annual payment of 16,100 dollars

  Make the December adjusting journal entry

On January 1, Valuation Allowance for Trading Investments had a zero balance. Make the December 31 adjusting journal entry

  How much overhead was assigned to each of the three jobs

How much overhead was assigned to each of the three jobs, 301, 302, and 30? What was the over- or underapplied manufacturing overhead for year 1?

  How much cash was received when the bonds were issued

How much cash was received when the bonds were issued? How much of the discount or premium should be amortized with the first interest payment?

  Schedule of cash collected from customers

Schedule of cash collected from customers

  Articles on healthcare reform

For this assignment you will write a three to four page paper addressing the following: - Locate a minimum of three articles on healthcare reform and how it has impacted quality, economics, and patient safety on healthcare services in the U.S.

  Solve amount of the allowance for doubtful accounts

Fife, Inc., Calculate the amount of the Allowance for doubtful accounts that should appear on the December 31, 20X5, balance sheet

  Evaluate managers of various segments

Organizations use a variety of performance measures to evaluate managers. Central to the idea of responsibility accounting is that performance measures

  Charter company does not divide costs into fixed and

charter company does not divide costs into fixed and variable components. personnel costs are allocated based on the

  Amount of interest expense recorded annually

Garrison Company issued $500,000 bonds with a stated interest rate of 10% for $480,000 in 2009. The bonds pay interest annually and have a 10 year maturity. The amount of interest expense that should be recorded annually should be ?

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!

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