Make the entries to record the amortization

Assignment Help Accounting Basics
Reference no: EM133079390

Question - Accounting for a Non-Interest-Bearing Note - Zobell Corporation sells equipment with a book value of $8,000, receiving a non-interest-bearing note due in three years with a face amount of $10,000. There is no established market value for the equipment. The interest rate on similar obligations is estimated at 12%. Compute the gain or loss on the sale and the discount on notes receivable, and make the necessary entry to record the sale. Also, make the entries to record the amortization of the discount at the end of the first, second, and third-year using effective-interest amortization.

Reference no: EM133079390

Questions Cloud

Calculate the liability component and the equity component : The market rate of interest to be used in discounting calculations is 7%. Calculate the liability component and the equity component of this bond
Which journal entries correctly records the cost : Assuming normal spoilage is 10% of production for the premium option, which of the following journal entries correctly records the cost
Explain procedures that a company could use : Explain four procedures that a company could use to minimise risk and develop the risk management plan using the risk management plan template
Opening for housekeeping staff at local hospital : What labor markets should be considered when recruiting to fill an opening for a housekeeping staff at a local hospital?
Make the entries to record the amortization : Also, make the entries to record the amortization of the discount at the end of the first, second, and third-year using effective-interest amortization
Types of financing entities covering the cost of healthcare : List at least six types of coverage organization from single-payer to universal coverage. Contrast them from the standpoint of billing.
What account should park debit to record : Park incurred salaries and wages of $800,000 for the month of April year 1. What account should Park debit to record this $800,000
Sampling distribution of the population variance : What is the sampling distribution of the population variance and what are the properties of this distribution?
What are the funds from operations : As at December 31, 202X FFF REIT has 10,000,000 units outstanding with each unit trading at $85. What are the Funds from Operations

Reviews

Write a Review

Accounting Basics Questions & Answers

  Provide a critical analysis of m and rs implementation

Provide a critical analysis of M&R's implementation of the balanced scorecard, including an identification of the strengths and weaknesses of the program.

  Compute the variable overhead variance

The flexible budget had $255,180 variable overhead based on 42,530 direct labor-hours; Compute the variable overhead variance

  What are the defining characteristics

Discuss this statement: "The application of ?nancial theory to new venturing has uniquely de?ning characteristics that differentiates

  How compensation expense is computed using the fair value

How compensation expense is computed using the fair value approach?

  How many bonds must GM sell

The market value of each bond at issue time will be $1,000. How many bonds must GM sell to net $95 million after flotation costs

  Find what amount will dudas report the bonds on december

The market rate of interest on January 1, 20X4, Find what amount will Dudas report the bonds on its December 20X4 statement of financial position?

  How the transaction would be reported

During 2014, Markowitz Company exchanged $1,700,000 of its common stock for land. How the transaction would be reported on a statement of cash flows, if at all

  Compute the budgeted manufacturing overhead rate

Costs are allocated to jobs using a budgeted machine hour rate. Compute the budgeted manufacturing overhead rate

  Explain financial administration and audit act of jamaica

The government of Jamaica is interested in setting up a new Internal Audit Department at the Ministry of Labour, because the previous department.

  How much were the dividends

Total liabilities increased by $20,000, and net income was $90,000. If no additional capital stock was issued, how much were the dividends

  Determine the actual weight

Determine the actual weight, volume weight and chargeable weight (freight charge) of the shipment. Customer D, located in Hamilton, has 6 skids of office

  Provide only reasonable assurance on the financial statement

Which of the following is not one of the reasons that auditors provide only reasonable assurance on the financial statements? Tort actions against CPAs are more common than breach of contract actions because.

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