Reference no: EM132526110
On January 1, 20X4, XYZ Equipment Corp. delivered a road grader andan excavator to a client. Pertinent details of the transaction follow:
- XYZ paid $290,000 for the road grader. It normally sells these graders for $377,000 cash.
- XYZ paid $218,000 for the excavator. It normally sells these excavators for $273,000 cash.
- XYZ received $75,000 cash on delivery of the equipment and accepted a $600,000, three year, interest-free note receivable payable at $200,000 per year, first payable on January 1, 20X5.
The market rate of interest for transactions of this nature is 4% per annum.
- XYZ, whose fiscal year end is December 31, prepares its financial statements in accordance with IFRS. It uses the specific identification method to account for inventory. All payments on the notes receivable were made on the scheduled dates. XYZ only prepares accruals and adjusting entries at year end.
Required:
Question a) The purchase price between the two deliverables.
Question b) Journal entries pertaining to the sale of the equipment on January 1, 20X4.
Question c) Journal entries for each of December 31, 20X4, January 1, 20X5, December 31, 20X5, January 1, 20X6, December 31, 20X6, and January 1, 20X7
|
How should Holmgren Chemical report this information
: Holmgren's insurance policy of €9,000,000 has a deductible clause of €500,000. How should Holmgren Chemical report this information
|
|
Provide depreciation expense for year one
: Provide Depreciation expense for year 1,2 and 3.A truck was purchased at the beginning of its fiscal year for $78,000 and Q3 had been depreciated for 2 years
|
|
Communication planning and risk management planning
: Describe the general processes that should be followed in managing risks throughout a project.
|
|
Journalize depreciation expense for the year ended december
: Fairfield Oil Drilling Company bought a Mitashi copier machine for $170,000 on April 1, 2010. Journalize depreciation expense for the year ended December
|
|
Make a journal entries for each of december
: Make a Journal entries for each of December 31, 20X4, January 1, 20X5, December 31, 20X5, January 1, 20X6, December 31, 20X6, and January 1, 20X7
|
|
Briefly discuss the concept of incremental budget
: Briefly discuss the concept of incremental budget and Briefly discuss the preparation of income statement budget - Complete the incremental assumption
|
|
What is the genetic abnormality
: Based ont the genetic disorder, klinefelters syndrome: who is affected? What is the genetic abnormality? What treatments are available?
|
|
What is the leadership paradox
: What is the leadership paradox? Give some reasons why a leader can encounter difficulty in newly formed teams or groups using a participative management system
|
|
Compute such variances as can be derived from the data
: During the preceding month, the actual production was 7,560 units. Compute such variances as can be derived from the above data
|