On december 31 2012 tran co performed environmental

Assignment Help Accounting Basics

Reference no: EM13392786

On December 31, 2012, Tran Co. performed environmental consulting services for Hayden Co. Hayden was short of cash, and Tran Co. agreed to accept a $100,000 zero-interest-bearing note due December 31, 2014, as payment in full. Hayden is somewhat of a credit risk and typically borrows funds at a rate of 15%. Tran is much more creditworthy and has various lines of credit at 8%.

Instructions

a) Prepare the journal entry to record the transaction of December 31, 2012, for Tran Co.

b) Assuming Tran Co.'s fiscal year-end is December 31, prepare the journal entry for December 31, 2013.

c) Assuming Tran Co.'s fiscal year-end is December 31, prepare the journal entry for December 31, 2014.

Reference no: EM13392786

Questions Cloud

Sykes corp factors 100000 of accounts receivable with ktt : sykes corp. factors 100000 of accounts receivable with ktt finance corporation on a without recourse basis on july 1

Kleaner kars has a return on assets of 675 percent a net : kleaner kars has a return on assets of 6.75 percent a total asset turnover rate of 1.3 and an equity multiplier of 1.6.

Analyze the strategic manner in which the leading company : select one 1 of the following categories of products to research sports apparel automobiles home furnishings or

You are the general manager of a large construction project : 1. you are the general manager of a large construction project. the contract has both financial incentives for

On december 31 2012 tran co performed environmental : on december 31 2012 tran co. performed environmental consulting services for hayden co. hayden was short of cash and

Create three new it initiatives which can help selected : the changing business environment requires organizations to find creative ways to compete with others in their industry

As well the firm had a net inflow of 300000 from the sale : the johnson and baker company increased investments in foreign securities by 120000 funded fixed asset acquisitions by

Monaco is planning to factor some accounts receivable at : monaco is planning to factor some accounts receivable at the end of the year. accounts totaling 50000 will be

Explain elasticity of demand as it pertains to elastic unit : economists use elasticity to measure consumer responsiveness to changes in the various determinants associated with

User Account

All Pages