Journal entries at the date of purhase

Reference no: EM13125308

Soldan Corporation purchased a computer on December 31,2011, paying 30,000 down and a further payment due on December 31,2014.An interest rate of 10% is implicit in the purchase price. Soldan uses the Effective method and has December the 31 as year end.

1. Prepare the journal entries at the date of purhase

2. Prepare the journal entries at the end of the first year to record the payment and interest, assuming that the company uses effective method.

3. Record the journal entries at the second year to record the payment and interest.

Reference no: EM13125308

Questions Cloud

Explain the meaning of mrts for production function : Briefly explain the meaning of MRTS for this production function and what is elasticity of substitution when the capital-labour ratio changes from 1/10 to 1/30?

Compute the company predetermined overhead rate : Willow Creek Corporation bases its predetermined overhead rate on the estimated labor hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor hours for the upcoming year at 38,500 labor ho..

Illustrate what is total amount of other financing source : Illustrate what is the total amount of other financing sources to be recognized on the fund-based financial statements over this six-year period?

Weakly bounded subset-weak convergence : Suppose that E is a normed linear space, and C is a subset. Prove that C is weakly bounded if and only if C is norm bounded. Conclude that weakly convergent sequences in E are bounded.

Journal entries at the date of purhase : Soldan Corporation purchased a computer on December 31,2011, paying 30,000 down and a further payment due on December 31,2014.An interest rate of 10% is implicit in the purchase price. Soldan uses the Effective method and has December the 31 as y..

Determine the molality of a solution : Determine the molality of a solution prepared by dissolving 0.500 moles of CaF2 in 11.5 moles H2O.

Why does the tax law provide favorable treatment : The tax law provides very favorable tax treatment for long term capital gains. First, explain what that favorable treatment is. Second, why? Why does the tax law provide favorable treatment for long term capital gains? Do you agree that they shoul..

Sum and product of two numbers : Find two numbers whose product is 192 and the sum of the first plus three times the second is a minimum.

Illustrate what are ed and his widow gross income : After Ed's death, his former employer paid Ed's widow $12,000 in "her time of need." Ed's widow also collect $25,000 on a group term insurance policy paid for by Ed's employer. Illustrate what are Ed's and his widow's gross income?

User Account

All Pages