User Account

All Pages

Prepare journal entries

Assignment Help Accounting Basics
Reference no: EM133022930

Question - Oasis Company acquired three items of machinery: a) On January 1, 2019, the entity purchased a machine for P500,000 down and four monthly installments of P1,250,000. The cash price of the machine was P4,700,000.

b) On December 31, 2019, the entity purchased a machine in exchange for a noninterest bearing note requiring ten payments of P500,000. The first payment was made on December 31, 2020, and the others are due annually on December 31.

The prevailing rate of interest for this type of note at date of issuance was 12%. The present value of an ordinary annuity of 1 at 12% is 5.33 for nine periods and 5.65 for ten periods.

On December 31, 2019, the entity acquired used machinery by issuing the seller a two-year, noninterest-bearing note for P3,000,000. In recent borrowing, the entity has paid a 12% interest for this type of note. The present value of 1 at 12% for 2 years is .80 and the present value of an ordinary annuity of 1 at 12% for 2 years is 1.69.

Required - Prepare journal entries for 2019, 2020 and 2021.

Reference no: EM133022930

Questions Cloud

What is the present value : What is the present value of $300 received at the beginning of each year for five years? Assume that the first payment is not received until the beginning
Calculate the average of the conditional expectations : Calculate the average of the conditional expectations computed over all 10,000 iterations of the "for loop".
Determine the value that will be paid for interest : Determine the value that will be paid for interest in month 12. Installment value of the debt using the fixed installment method
Discuss the investment attributes : Discuss the investment attributes for each of three NCREIF real estate portfolio style definitions. For what type of investors would each style be appropriate
Prepare journal entries : The present value of an ordinary annuity of 1 at 12% is 5.33 for nine periods and 5.65 for ten periods. Prepare journal entries for 2019, 2020 and 2021
What is the sales revenue under the optimistic case scenario : The expected variable cost per unit is $7 and the expected fixed cost is $36,000. What is the sales revenue under the optimistic case scenario
What will be the beta of the new portfolio : You plan to use the proceeds to purchase another stock that has a beta equal to 0.48. What will be the beta of the new portfolio
How much will you have in the IRA when you retire : At age 33 to save for retirement you decide to deposit $90 at the end of each month. How much will you have in the IRA when you retire
How much will you have after four years : Suppose the annual interest is 6.7 percent, but compounded monthly. If you saved your allowance every month, how much will you have after four years

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate depreciation for each year of the machine

Calculate depreciation for each year of the machine's estimated useful life under each of the Straight-line methods. (Do not round intermediate calculations.)

  What is chuck amti for the year

In 2015, he claims a $4,000 personal exemption and records taxable income of $120,000. Chuck's AMT preferences total $51,000. What is Chuck's AMTI for the year

  Calculate the amount of the Federal income tax

Landscaping, Inc., remits all of its after-tax profits each year to Initiate. Calculate the amount of the Federal income tax, if any, for Initiate

  Calculate the accounts receivable balance

Leaning Tower of Pizza, Inc., is preparing its master budget for its first quarter of business. It expects to sell 1,000 pizzas at $11 per pizza per month.

  Record each transactions of the general journal

Apr. 12 Performed services for $3,200 in cash, and $1,200 on credit.19Paid electric bill, $225. Record each transactions of the general journal

  Determine the correct inventory amount on December

Splish Brothers shipped goods costing $54,220 to Ehler of Canada FOB destination on December 30. Determine the correct inventory amount on December

  Determine the facts of the case

This assignment is a research-based essay where you are required to relate a real-world case study to accounting theory. Below you will find links to news.

  At the end of year 1 the companys board of directors set a

at the end of year 1 the companys board of directors set a target for year 2 of net operating income of 140000 under

  Accepting a project with a npv makes the firm worse off

accepting a project with a npv makes the firm worse off financially because the cost of the investment exceeds the

  Inheritance invested if the money earns interest

A person received an inheritance of 500000 rs and want to invest a portion of it for future. His goal to accumulate 700000 rs in 12 year. How much of the inheritance should be invested if the money earns interest at 12% per year compounded semi an..

  Evaluate Thelma understanding of the tax law

The delay is undertaken to enable the recognized gain to qualify for long-term capital gain treatment. Evaluate Thelma's understanding of the tax law

  Which is not true regarding the optional basis adjustment

Which is not true regarding the optional basis adjustment? the basis adjustment may be positive (increase) or negative (decrease).

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