User Account

All Pages

Make the journal entries to record the interest revenue

Assignment Help Accounting Basics
Reference no: EM132156237

Question - On January 1, 2016, Domino Incorporated sells factory equipment to Jon Associates in return for a $900,000, 3 year, zero interest notes maturing on December 31, 2018. The cost of the equipment is $1,000,000 and the accumulated depreciation is $300,000 on the books of Domino Incorporated. The normal borrowing rate for Jon is 6%.

Required:

1. Make the journal entry to record the sale of the land on Domino's books.

2. Make an amortization table using the effective interest method.

3. Make the journal entries to record the interest revenue in 2016, 2017 and 2018 for Domino.

Reference no: EM132156237

Questions Cloud

Prepare the journal entry to record the impairment loss : Vaughn Company owns equipment that cost $918,000 and has accumulated depreciation of $387,600. Prepare the journal entry, if any, to record the impairment loss
Organization with multiple strategic business units : Find an example of an organization with multiple strategic business units. How does the organization define its corporate goals?
What lessons can we learn from starbucks : What lessons can we learn from Starbucks? Who benefits and who suffers as a result of Starbucks' actions
Promoting a patient right to self-determination : Discuss the impact of the Quinlan case on an individual's right to make choices regarding medical care versus the state's right to preserve human life.
Make the journal entries to record the interest revenue : On January 1, 2016, Domino Incorporated sells factory equipment to Jon Associates in return for a $900,000, Make the journal entries to record the interest
How your psychological and physical health interacted : Complete a 3-4 page reflection (not counting title or reference pages) in which you analyze the results of your sleep/dream journal.
Exercised leadership or management skills : What do you consider to be a weakness? Tell me about a time you exercised leadership or management skills.
Protected with professional liability insurance : What are the important components of a comprehensive insurance policy in order to ensure adequate coverage for professionals?
Make any necessary adjusting entries : On December 31, 20XX, the company repaired a packaging machine at cost of $27,000.00. Make any necessary adjusting entries

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd