Provide the journal entries for 2013 to record the receipt

Assignment Help Financial Accounting
Reference no: EM13499074

Tortuga Enterprises loaned $350,000 to Turner Inc. on January 1, 2010. The terms of the loan require principal payments of $70,000 each year for five years plus interest at the market rate of interest of 6%. The first principal and interest payment is due on January 1, 2011. Turner made the required payments during 2011 and 2012. However, during 2012 Turner began to experience financial difficulties, requiring Tortuga to reassess the collectibility of the loan. On December 31, 2012, Tortuga determines that the remaining principal payments will be collected, but the collection of interest is unlikely.

1. Compute the present value of the expected future cash flows as of December 31, 2012.

2. Provide the journal entry to record the loan impairment as of December 31, 2012.

3. Provide the journal entries for 2013 to record the receipt of the principal payment on January 1 and the recognition of interest revenue as of December 31, assuming that Tortuga's assessment of the collectibility of the loan has not changed.

Reference no: EM13499074

Questions Cloud

Explain what would the average atomic mass of phosphorus : Suppose that the atomic mass unit (amu) had been defined as one-sixth of the average mass of an atom of fluorine instead of one-twelfth of the mass of an atom of carbon-12.
What should the testing environment be like : What should the testing environment be like and who should administer the test - What information will you gather, and how will you gather it?
What frequency is detected by the astronomers : Consider a spiral galaxy that is moving directly away from Earth with a speed V = 3.600 106 m/s at its center, What frequency is detected by the astronomers observing the upper and lower arms
Explain the average mass of an atom of fluorine : Suppose that the atomic mass unit (amu) had been defined as one-sixth of the average mass of an atom of fluorine instead of one-twelfth of the mass of an atom of carbon-12.
Provide the journal entries for 2013 to record the receipt : Provide the journal entries for 2013 to record the receipt of the principal payment on January 1 and the recognition of interest revenue as of December 31, assuming that Tortuga's assessment of the collectibility of the loan has not changed.
Acme films produces advertisements for cable television : Acme Films produces advertisements for cable television stations. They have two locations in a large metropolitan area. Building 1 contains the administrative, sales, marketing, human resources, development, and graphics departments
Compute the densities of a hydrogen nucleus : Using the information on the mass of a proton, mass of an electron and the sizes of the nucleus and the atom, calculate the densities of a hydrogen nucleus and hydrogen atom.
Explain the measured quantities were not actual charges : Some of Milikan's oil-drop data are shown in the table. the measured quantities were not actual charges on oil drops but were proportional to these charges.
Design a wan replication topology : Design a WAN Replication Topology

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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