Prepare the journal entries for cool globe inc

Assignment Help Financial Accounting
Reference no: EM132418943

Problem: Cool Globe Inc. entered into two transactions, as follows:

A. Purchased equipment paying $20,000 down and signed a noninterest-bearing note requiring the balance to be paid in four annual installments of $20,000 on the anniversary date of the contract. Based on Cool Globe's 12% borrowing rate for such transactions, the implicit interest cost is $19,253.

B. Purchased a tract of land in exchange for $10,000 cash down payment and a noninterest-bearing note requiring five $10,000 annual payments, with the first annual payment in one year. The fair value of the land is $46,000.

Required: Prepare the journal entries for these transactions.

Reference no: EM132418943

Questions Cloud

Explain all the determinants of exchange rates : There are different determinants in exchange rates. Explain all the determinants of exchange rates. Write all the 14 points under determinants of exchange rates
Explain role of government in financing international trade : Assignment - Role of International Financial Institute. Explain the role of government in financing international trade. Write about the EXIM
PMA 3550 Global Cinema I Assignment : PMA 3550 Global Cinema I Assignment Help and Solution, Cornell University Homework Help - Assessment Writing Service - relationship between truth and cinema
Evaluating the success of the new product or service : Evaluating the success of the new product or service-explaining how results will impact decisions on whether to continue or to initiate exit strategies.
Prepare the journal entries for cool globe inc : Cool Globe Inc. entered into two transactions, as follows: Prepare the journal entries for these transactions.
How these principals connect to electricity and magnetism : Explain how these principals connect to electricity, magnetism, or light in modern applications in physics.
Management Development and Skill Assignment : Management Development and Skill Assignment - What do you mean by Planning? Discuss the advantage of planning. Discuss the John Fisher Model of Personal Change
How will customer information be protected : Research and assess the ethical issues related to data customer collection and information management. How will customer information be protected?
Discuss the effect of this asymmetric feature of eso : In other words, do these features lead to managers undertaking high-risk projects or low-risk projects?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Economic order quantity decision model and models used

How can companies reduce the conflict between the Economic Order Quantity (EOQ) decision model and models used for performance evaluation? What are spoilage, rework, and scrap, and how are they accounted for under job order versus process costing sys..

  Calculate the total after-tax cost of the present values

Calculate the total after-tax cost of the present values of the cash flows associated with each alternative and which financial alternative would you recommend that the company accept? Why?

  Percent sales commission

The cost to sell for each product consists of a 20 percent sales commission. The normal profit percentage for each product is 30 percent of the selling price.

  Review the financial statement analysis

To enable students in utilising financial ratios for the purpose of evaluating a firm's financial performance and financial position as well as in recognising.

  Marginal cost includes prime cost plus fixed overheads

Marginal cost includes prime cost plus fixed overheads and contribution is the difference between the selling price and the total costs.

  Calculate the price he will receive from each bond

Calculate the price he will receive from each bond if he sells on 15 August, 2017 at the new yield, immediately after receiving the interest payments

  Federal income tax return

Use the given information to complete Phillip and Claire Dunphy's 2012 federal income tax return.

  Discuss whether jonni is behaving in professional manner

At the end of the current month, Jonni Rembert prepared a trail balance for star Rescue Service. The credit side of the trail balance exceeds the debit side by a significant amount. Jonni has decided to add the difference to the balance of the miscel..

  Payment of cash dividends are recorded

Payment of cash dividends are recorded as a decrease in cash and an increase in expenses a decrease in cash and a decrease in retained earnings an increase in dividend expense and a decrease in cash a decrease in cash and a decrease in..

  In which situation does internal auditor lack objectivity

In which situation does the internal auditor lack objectivity?

  Question unified chemical company has a joint production

question unified chemical company has a joint production process that converts zeta into two chemicals beta and alpha.

  You are a assistant for tyler corporation it is mid-january

you are a assistant for tyler corporation. it is mid-january 2011 and you are helping to prepare the tyler corporations

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!

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