User Account

All Pages

Prepare the journal entry at the date of purchase

Assignment Help Accounting Basics
Reference no: EM132625801

Question - Pina Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2020, to expand its production capacity to meet customers' demand for its product. Pina issues a(n) $1,680,000, 5-year, zero-interest-bearing note to Central Michigan for the new equipment when the prevailing market rate of interest for obligations of this nature is 12%. The company will pay off the note in five $336,000 installments due at the end of each year over the life of the note.

Required - Prepare the journal entry at the date of purchase.

Reference no: EM132625801

Questions Cloud

How many units of product x must be sold for teza to reach : How many units of product X must be sold to earn a target operating income of $90,000? How many units of product X must be sold for TEZA to reach?
Identify which individuals and corporations emily is related : Identify which individuals and corporations Emily is related to and which she is not related to according to the Income Tax Act. Provide explanation to support
Analyze why physics is central to understanding our world : Analyze why physics is central to understanding our world.
Analysis of dimensions of oppression and marginalization : Post an analysis of the dimensions of oppression and marginalization that might impact your future clients.
Prepare the journal entry at the date of purchase : The company will pay off the note in five $336,000 installments due at the end of each year over the life of the note. Prepare journal entry at date of purchase
Would say pb-j cafe co owes more money and why : Reha, If you're looking at these accounts and these accounts only, would you say PB&J Cafe Co. owes more money than it has, or vice versa? Why?
What is the straight-line depreciation for one year : Don's Landscaping Service purchased a backhoe for $12,000. Based on this information, what is the straight-line depreciation for one year for this asset
Investigate and modify workplace visual media communication : Investigate and modify workplace visual media communication to enhance efficiency in completing tasks.
How much did richardson company have in revenues : How much did Richardson Company have in revenues for the year? Additional investments by owner8,000. Liabilities, December 3158,000

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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