Purchases land having a fair market value of 300000 by

Reference no: EM13598024

On January 1, 2011, McLean Company makes the two following acquisitions.

Purchases land having a fair market value of $300,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $505,518.
Purchases equipment by issuing a 6%, 8-year promissory note having a maturity value of $400,000 (interest payable annually).

(a) Record the two journal entries that should be recorded by McLean Company for the two purchases on January 1, 2011.
(b) Record the interest at the end of the first year on both notes using the effective-interest method

Reference no: EM13598024

Questions Cloud

Problem 21-22a preparing a master budget for a retail : problem 21-22a preparing a master budget for a retail company with no beginning account balances unici company is a

Compute the fica withholdings that should be made for each : employee earnings records for medenciy company reveal the following gross earnings for four employees through the pay

Shelby corporation was organized in january 2010 by 10 : shelby corporation was organized in january 2010 by 10 stockholders to operate an air conditioning sales and service

The 96 bonds were issued in 1998 at 975 to yield 10 : intermediate accounting 6th ed. by spiceland - ch.14 p14-18 bradley-links december 31 2011 balance sheet included the

Purchases land having a fair market value of 300000 by : on january 1 2011 mclean company makes the two following acquisitions.purchases land having a fair market value of

The company is considering using an activity-based costing : the company is considering using an activity-based costing system to compute unit product costs for external financial

Robinson inc had outstanding 5067000 of 11 bonds interest : robinson inc. had outstanding 5067000 of 11 bonds interest payable july 31 and january 31 due in 10 years. on july 1 it

How are unrealized gains or losses on trading investments : heritage insurance co. is a regional insurance company that began operations on january 1 2012. the following

Exercise 22-6a using a flexible budget to accommodate : exercise 22-6a using a flexible budget to accommodate market uncertainty.according to its original plan katta

User Account

All Pages