Solution-Prepare the journal entries to record

Prepare the journal entries to record

Assignment Help Accounting Basics

Reference no: EM131006680

At the beginning of the year, Lambert Motors issued the three notes described below. Interest is paid at year-end.

1. The company issued a two-year, 12%, $600,000 note in exchange for a tract of land. The current market rate of interest is 12%.

2. Lambert acquired some office equipment with a fair value of $94,643 by issuing a one-year, $100,000 note. The stated interest on the note is 6%.

3. The company purchased a building by issuing a three-year installment note. The note is to be repaid in equal installments of $1 million per year beginning one year hence. The current market rate of interest is 12%.

Required:

Prepare the journal entries to record each of the three transactions and the interest expense at the end of the first year for each.

Reference no: EM131006680

Questions Cloud

Using the fifo basis prepare a process costing report : PNG Corporation designs and builds roller coasters for amusement parks. At the end of 20x1, managers estimated overhead costs for 20x2 of $150,000 based on expected production of 5 roller coasters (5 jobs) using 5,000 labor hours each. Actual ov..

Find the long run cost total cost and short run total cost : Consider a firm with a production function F(l, k) = l^{\frac{3}{4}} k^{\frac{1}{4}} , who faces input prices w = 2 and v = 54. Find the long run cost total cost when q=540. Find the short run cost total cost when q=540 and k is fixed at 16. Find the..

Do you agree with anselm argument : Do you agree with Anselm's argument? Does anything seem a little strange about Anselm's reasoning or do you notice any problems with Anselm's argument? When answering this question make sure to include references to the assigned readings in you..

Firms research department has estimated elasticity of demand : Your firm's research department has estimated the elasticity of demand for toys to be -0.7. As the manager of the firm, determine the impact of an 8% increase in toy prices on your total revenues.

Prepare the journal entries to record : The company purchased a building by issuing a three-year installment note. The note is to be repaid in equal installments of $1 million per year beginning one year hence. The current market rate of interest is 12%.

Exams for promotion to ranks of captain and lieutenant : The New Haven Fire Department gave exams for promotion to the ranks of Captain and Lieutenant. Forty-one applicants took the captain's exam, including twenty-five whites, eight African Americans, and eight Latinos.

Describe the change in the interpretation : Describe the change in the interpretation of the due process clause and is the present interpretation health and realistic?

African americans currently in promotional positions : The Omaha Fire Department had an affirmative action plan that provided for the following regarding promotions: The percentage of African Americans currently in promotional positions was compared against the percentage available within the departme..

Discuss clarke cosmological arguement : Analyze and discuss one and only one of the following two classical arguement for the existence of god- St, Anselm's Ontological Arguement and Clarke's Cosmological Arguement

User Account

All Pages

Prepare the journal entries to record

Reference no: EM131006680

Reference no: EM131006680

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT