Imputed interest on non-interest-bearing

Assignment Help Auditing

Reference no: EM1356725

On December 31, 2011, Fenton Company sold equipment to Denver, Inc., accepting a $275,000 noninterest-bearing note receivable in full payment on December 31, 2014. Denver, Inc., normally pays 12% for its borrowed funds. The equipment is carried in Fenton's perpetual inventory records at 65% of its cash selling price.

1) Prepare Fenton's journal entries to record the sale on December 31, 2011.

2) Prepare Fenton's journal entry on December 31, 2012, necessitated by this transaction. (Hint: Prepare an amortization schedule for the loan.)

3) Show Fenton's balance sheet presentation of Denber's note at December 31, 2012.

Reference no: EM1356725

Questions Cloud

Journal entry for re-issuance of stock : A company purchases 300 shares of its $100 par value stock at $110 per share. It then reissues 50 shares at $115 per share. The entry upon re-issuance of the stock would include a

Acknowledging the therapists of own biases : Give a brief explanation of why acknowledging the therapists own biases may be helpful when working with clients.

Journal entries for howe office supply : On September 1, Howe Office Supply had an inventory of 30 calculators at a cost of $18 each.The company uses a perpetual inventory system. During September, the following transactions occurred.

Behavorial program presentation plan : implement a ongoing training that would incorporate staff so that as more come into the shelter, they would be prepared in the future if the behaviors present themselves again.

Imputed interest on non-interest-bearing : Prepare Fenton's journal entries to record the sale on December 31, 2011. Prepare Fenton's journal entry on December 31, 2012, necessitated by this transaction. (Hint: Prepare an amortization schedule for the loan.)

Explain and identify critical decisions you believe : Explain and Identify critical decisions you believe were made that influence productivity and how those decisions reflect ethical leadership behavior.

Specific pattern of language development : Is there is a certain specific pattern of language development that all children follow regardless of external circumstances?

Journal entries for asset retirements : Acme Company purchases an oil tanker depot on January 1, 2012, at a cost of $828,000. Acme expects to operate the depot for 10 years. Prepare any journal entries required for the depot and the asset retirement obligation at December 31, 2012. Acme ..

What is the temperature of the water : How much energy transfer as the reason of a temperature difference was there from the stove into the system consisting of the water plus the pan.

User Account

All Pages