Prepare the journal entries to record the issuance of note

Assignment Help Accounting Basics
Reference no: EM132699103

Question - Fun Land Corp. issued a 5-year, 0 interest bearing note with a $1,000,000 face value to Lightning Inc. for $1,000,000 cash. Fun Land also gave Lightning the right to use a parcel of land for equipment storage for 5 years. Interest rates for notes of this type were 8% at issue.

Required - Prepare the journal entries to record the issuance of the note by (1) Fun Land and (2) Lightning.

Reference no: EM132699103

Questions Cloud

Policy regarding use of instant messaging : You have been asked to draft a corporate usage policy regarding the use of instant messaging.
How stock price of two companies are expected to be affected : How stock price of two companies are expected to be affected. COS and MS are two listed competing shipping companies in the US.
Explain the pharmacy services in brief : The Comprehensive Final Project (Assignment #4) has been designed for the student to identify federal and state policy roots in a specific health services.
Compute What is the estimated ending inventory : Compute What is the estimated ending inventory? The following data for Fern's Florist Shop shows the first seven months of its fiscal year
Prepare the journal entries to record the issuance of note : Fun Land also gave Lightning the right to use a parcel of land for equipment storage for 5 years. Prepare the journal entries to record the issuance of note
Which of the answers corresponds to the stock option benefit : Which of the answers corresponds to the stock option benefit to be included in Olli's Net Employment Income for the year 2020?
Juvenile and adult courts : Describe your case and legal issues facing the juvenile and the court. Describe adjudication process by which a juvenile is transferred to adult court system
Find which is a perpetual inventory system : Find which is A perpetual inventory system? does not require a physical count at the end the fiscal year./ can be maintained only with computer software.
Find reduce the wacc and increase stock price : The CFO believes that this recapitalization would reduce the WACC and increase stock price.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Power is a leaders influence over their followers while

power is a leaders influence over their followers. while power has the potential to control others it is the perception

  Prepare the journal entries for both companies

Textile manufacturer Cullumber Corp. exchanges robotic equipment with an original cost of $20,900. Prepare the journal entries for both companies

  Does a negative residual income amount equate

What do you think would be an acceptable return on investment in the current economic climate? Please explain.

  What is to amount of supplies expense for the accounting

What is to amount of Supplies Expense for the accounting period? A. $5,400B. $9,400C. $2,600D. $4,000

  Determining proportion of population in favor of proposition

An opinion poll based on a sample of 50 subjects estimated p, the proportion of the population in favor of the proposition, as 0.72.

  Preparation of the shipping documents for the order

CD Express, Inc., provides CD duplicating services for its customers. Preparation of the shipping documents for the order

  Compute the dollar amount of ending inventory

Compute the dollar amount of ending inventory and cost of goods sold at December 31, 2015 under Average cost, First-in, first-out, Last-in and first-out.

  Tax consequences for christie of investment

In 2010, CCP suffers a loss of $30,000, and Christie withdraws $10,000. What are the tax consequences for Christie of this investment in 2009 and 2010?

  What activities should you perform to correctly account

You own Widgets ‘R Us and are preparing your year-end financial statements: What activities should you perform to correctly account for your inventory.

  Prepare kasey''s journal entry to record

Prepare Kasey's journal entry to record the credit card sales.

  How would you implement the concept of triple bottom line

How would you implement the concept of Triple Bottom Line (People, Planet, Profit) at NAB company you created? Before Responding check out these Resources.

  What amounts will book mart report

What amounts will Book Mart report on the 2013 W-2s for each employee?

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