User Account

All Pages

Determine the note payable carrying value on January

Assignment Help Accounting Basics
Reference no: EM132848571

Question - 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) Prepared 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: EM132848571

Questions Cloud

Prepare a classified balance sheet in good form : Prepare a classified balance sheet in good form. Common stock authorized was 1,000,000 shares, and preferred stock authorized was 50,000 shares
Was founding father : Thomas Paine is remembered as one of the most influential figures of the American Revolution. Was he a general? No. Was he a Founding Father?
Recognize the inner droplet and outer wrap : Recognize the droplets from a video using computer vision algorithms that is taken by a high-speed camera during the droplet 3D printing process
What would be advantages to installing computer-monitoring : The president of the mid-sized organization, What would be the advantages and disadvantages to installing computer-monitoring software?
Determine the note payable carrying value on January : On January 1, 2020, TPM Inc. acquires a piece of equipment for a list price of $300,000. Determine the note payable carrying value on January
What statistics reveal about telecommuting : Consider what jobs are ideal for telecommuting, what statistics reveal about telecommuting and how it impacts employee productivity.
Should first national bank consider contracting outone : Should First National Bank consider contracting outone of its operations offshore, such as call center or tech support? As a consultant
Identify component of comprehensive electronic communication : What should the decision criteria be? What are the advantages and disadvantages of each option? Make recommendations to the owner.
How much are you willing to pay to purchase one share : Three Corners Markets is expected to pay an annual dividend of $1.37 per share next year. How much are you willing to pay to purchase one share

Reviews

Write a Review

Accounting Basics Questions & Answers

  A department adds raw materials to a process at the

a department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformally

  Huxtable charges manufacturing overhead to products by using

Huxtable charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of machine hours. The following data pertain to the current year:

  Determine the cost of all sources of capital

Determine the cost of all sources of capital. Determine the market value of all sources of capital. Calculate the firm's Weighted Average Cost of Capital

  Determine Perk A taxable income

Federal taxable income is starting point in computing A taxable income. State income taxes are not deductible for A tax purposes. Determine Perk taxable income

  Prepare the entries to record the above transactions

Prepare the entries to record the above transactions. Assume all costs incurred during January through September were incurred for cash

  Assume sparkle co expects to sell 150 units next month the

assume sparkle co. expects to sell 150 units next month. the unit sales price is 100 unit variable cost is 35 and the

  What the amount of bonus to Q in amounted to

What the amount of bonus to Q in 2019 amounted to? On January 2, 2019. B and Q formed a partnership. B contributed capital of P175,000

  Calculate the payback period for each case

Ventura Manufacturing is considering an investment in a new automated manufacturing system. The new system requires an investment of $3,000,000 and either has Even cash flows of $750,000  per year  or  The following expected  annual  cash flows: $375..

  Calculate the amount of their deduction for interest paid

Calculate the amount of their deduction for interest paid on qualified residence acquisition debt and qualified home equity debt for the current year

  If department h had 538 units 53 completed in process at

if department h had 538 units 53 completed in process at the beginning of the period 5588 units were completed during

  Austin company uses the dollar value lifo inventory method

The Austin Company uses the dollar-value LIFO inventory method with internally developed price indexes.

  What is the amount and character of ben gain or loss

Ben's basis in the partnership is $27,000. What is the amount and character of Ben's gain or loss on the distribution

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