How much should NOREEN INC record interest

Assignment Help Accounting Basics
Reference no: EM133026990

Question - NOREEN INC, a truck dealer, sells a truck on January 1, 2019, to MENDOZA INC for P3,000,000. NOREEN agrees to repurchase the truck on December 31, 2020 for P3,630,000.

1. Assuming a 10% is imputed in the agreement, how much is the liability of NOREEN on January 1, 2019?

2. Using the information above, what is the interest expense for 2019?

3. How much should NOREEN INC record interest and retirement of its liability to MENDOZA INC on December 31, 2020?

Reference no: EM133026990

Questions Cloud

What the value of ending inventory : The following units of an inventory item were available for sale during the year: Beginning inventory 10 units at $55. What the value of ending inventory
Evolution of human resources management : Personnel management can be traced back to early management theories, illustrate using four (4) theorists of your choice (early management theorists)
Construct a data dictionary to model : Construct a data dictionary to model a healthcare database collection tool - Identify at least one required government standard
How much will she have accumulated if she retires : She can save $3,000 a year and earn 5 percent on this savings. How much will she have accumulated if she retires at age 65
How much should NOREEN INC record interest : How much should NOREEN INC record interest and retirement of its liability to MENDOZA INC on December 31, 2020
Diversity in a project managing organization : Analyze the advantages of having Diversity in a Project Managing Organization.
Diagnosis stage of change : One of the most important steps in a change process is the diagnosis stage. Define and discuss what the diagnosis stage of change involves.
Patient protection and affordable care act : What are the some of the objectives of The Patient Protection and Affordable Care Act (ACA)?
Talent acquisition manager some guidelines : Activity: Choose a job with which you are familiar. Develop a self-directed learning module for a skill that is important for that job.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the accrual basis of accounting

What is the accrual basis of accounting? What is an accrued expense? What is accrued revenue? What is a prepaid expense?

  Why does the number of units purchased affect your answers

Why does the number of units purchased have no effect on your answers to requirements 1 and 2 when the FIFO method is used?

  Discuss liability on parmas books at the date of acquisition

what is the appropriate value to be reported as an earnings contingency liability on Parma's books at the date of acquisition

  Compute wal marts inventory turnover and the average days

Compute Wal-Mart’s inventory turnover and the average days to sell inventory for the fiscal year 2007.

  Compute the consolidated gain or loss on a consolidated inco

Keenan Company has had bonds payable of $20,000 outstanding for several years.

  What is the balance of revaluation surplus on dec

While the revised useful life from the starts is 11 years with no change in residual value. what is the balance of revaluation surplus on Dec. 31,2024?

  Journal entries using the area of interest method

Journal entries using the area of interest method for 2018, 2019, and 2020. Calculations should be rounded to the nearest dollar

  Reconciliation of financial income and taxable income

The following differences enter into the reconciliation of financial income and taxable income of Hatley Ltd for the year ended 31 December 2008, its first year of operation. The enacted income tax rate is 30% for all years.

  Calculate sarah pay in lieu of notice

Calculate Sarah's pay in lieu of notice? Sarah has worked for five years, eight months and three weeks for her Ontario employer

  How are these transactions handled for income tax purposes

During 2018, Carmen had salary income of $90,000 and the following capital transactions: How are these transactions handled for income tax purposes

  Calculate the selling price for each bond issued

1). 830 bonds, 1000 face value, 8% stated rate, 10 year semi annual interest payment. Assuming the market rate of interest is 10% calculate the selling price for each bond issued. Answer to nearest dollar.

  What would be the impact on corporate america and society

Describe the changes and what would be the impact on Corporate America, society, CPA firms and other constituencies.

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