On january 1 2012 durdil co borrowed and received 670000

Assignment Help Accounting Basics

Reference no: EM13581590

On January 1, 2012, Durdil Co. borrowed and received $670,000 from a major customer evidenced by a zero-interest-bearing note due in 5 years. As consideration for the zero-interest-bearing feature, Durdil agrees to supply the customer's inventory needs for the loan period at lower than the market price. The appropriate rate at which to impute interest is 10%.

(a) Prepare the journal entry to record the initial transaction on January 1, 2012.

(b) Prepare the journal entry to record any adjusting entries needed at December 31, 2012. Assume that the sales of Durdil's product to this customer occur evenly over the 5-year period.

Reference no: EM13581590

Questions Cloud

Even better produces gummy worms that it sells in pocket : problem 3 - even better produces gummy worms that it sells in pocket size boxes. it uses direct labor hours as the cost

Lincoln products manufactures and distributes three types : lincoln products manufactures and distributes three types of golf clubs beginners intermediate and advanced. the

Match each of the following perspectives of the balanced : marrs company is implementing a balanced scorecard approach to improve performance. match each of the following

Acme birds inc produces bird seeds all direct materials : acme birds inc. produces bird seeds. all direct materials used in the production process are added at the beginning of

On january 1 2012 durdil co borrowed and received 670000 : on january 1 2012 durdil co. borrowed and received 670000 from a major customer evidenced by a zero-interest-bearing

The merchant manufacturing co has two servicing departments : the merchant manufacturing co. has two servicing departments - purchasing and maintenance - and two production

Suppose that during 2014 tax legislation was passed that : problem 16-8 multiple differences taxable income given two years balance sheet classification change in tax rate lo16-4

The finishing department of berle industries works on only : the finishing department of berle industries works on only one product and all costs are incurred uniformly while these

Doughboy bakery would like to buy a new machine for putting : doughboy bakery would like to buy a new machine for putting icing and other toppings on pastries. these are now put on

User Account

All Pages