Equipment manufacturer-transaction for fishbone corporation

Assignment Help Financial Accounting

Reference no: EM13825400

On January 1, 2014, Fishbone Corporation (an equipment manufacturer) sold equipment to Lost Company that cost $150,000. Fishbone received as consideration a down payment of $100,000 and a $240,000, 5% interest-bearing note due on December 31, 2016. The prevailing rate of interest for a note of this type on January 1, 2014, was 5%.

Record the 1/1/14 transaction for Fishbone Corporation and all necessary entries from 2014-2016.

Record the 1/1/14 transaction for Lost Company and all necessary entries from 2014-2016.

I don't understand when and how to deal with the downpayment. After I journalize that it was received at the beginning, is it a factor again at any point? Is the gain on the sale the regular gain + the down payment?

Reference no: EM13825400

Questions Cloud

How protocols support business processes : Define upper layer applications.Explain how the application layer manages distributed applications and their protocols.Describes the application protocols associated with these services

Discuss the role of an accountant in a business organization : Discuss the role of an accountant in a business organization

Explian about a firm operating monopolistically in a market : The problem belongs to Economics, mainly to Micro-economics and it converse about a firm operating monopolistically in a competitive market ends up with super-normal profit with advertisement.

Assessment of law enforcing agencies : The courts have dealt with the issues of search and seizure often, and the law concerning search and seizure is often confusing.

Equipment manufacturer-transaction for fishbone corporation : On January 1, 2014, Fishbone Corporation (an equipment manufacturer) sold equipment to Lost Company that cost $150,000. Fishbone received as consideration a down payment of $100,000 and a $240,000, 5% interest-bearing note due on December 31, 2016. T..

Case study: ulster carpet mills limited : Case Study: Ulster Carpet Mills Limited

Prepare the operating activities section of the statement : Prepare a statement of cash flows using the indirect method and compute free cash flow and prepare the journal entry.

State responsibility to protect life : Does the right of privacy include the right to die? What limitations has the US Supreme Court put on the right to die? Does government have a legitimate interest in becoming involved in an issue as personal as the right to die?

Implement strategic management accounting at permaclean : This is a case study that relates to Strategic Management Accounting and it is about Permaclean which is a domestic cleaning materials manufacturer. Permaclean increased its price and its market share fell by 27 percent. The management of Permacle..

User Account

All Pages