Performed environmental consulting services

Assignment Help Financial Accounting

Reference no: EM131293636

On December 31, 2015, Swifty Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Swifty Co. agreed to accept a $293,800 zero-interest-bearing note due December 31, 2017, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Swifty is much more creditworthy and has various lines of credit at 6%. Prepare the journal entry to record the transaction of December 31, 2015, for the Swifty Co.

Reference no: EM131293636

Questions Cloud

What periodic interest payment does gilligan make : Gilligan Corp. sells $100,000 of bonds to private investors. The bonds have a 6% coupon rate and interest is paid semiannually. The bonds were sold to yield 5%. What periodic interest payment does Gilligan make?

Prepare the journal entry to record this payment : On April 1, 2017, Bridgeport Company assigns $536,700 of its accounts receivable to the Third National Bank as collateral for a $304,800 loan due July 1, 2017. The assignment agreement calls for Bridgeport to continue to collect the receivables. Prep..

Allowance for uncollectible accounts is estimated : At what amount will accounts receivable be reported on the balance sheet if the gross receivable balance is $35,000 and the allowance for uncollectible accounts is estimated at 18% of gross receivables?

Fair-value method of accounting for marketable securities : Which of the following statements is not true of the fair-value method of accounting for marketable securities?

Performed environmental consulting services : On December 31, 2015, Swifty Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Swifty Co. agreed to accept a $293,800 zero-interest-bearing note due December 31, 2017, as payment in full. Hayduke is somewh..

Citizen worked in a foreign country for the period : A U.S. citizen worked in a foreign country for the period July 1, 2015 through August 1, 2016. Her salary was $10,000 per month. Also, in 2015 she received $5,000 in dividends from foreign corporations (not qualified dividends). No dividends were rec..

Prepare the journal entry to record income tax expense : Teri Hatcher Inc., in its first year of operations, has the following differences between the book basis and tax basis of its assets and liabilities at the end of 2013. Prepare the journal entry to record income tax expense, deferred income taxes, an..

Accounts receivable after write-off of ramirez receivable : At the end of 2017, Marigold Company has accounts receivable of $862,800 and an allowance for doubtful accounts of $42,100. On January 16, 2018, Marigold Company determined that its receivable from Ramirez Company of $6,430 will not be collected, and..

Self-employment income and taxpayer prefer : Pat generated self-employment income in 2016 of $76,000. The self-employment tax is: The taxpayer’s marginal tax bracket is 25%. Which would the taxpayer prefer?

User Account

All Pages