User Account

All Pages

Record the two journal entries

Assignment Help Accounting Basics
Reference no: EM132504812

Question - On July 1, 2020, Headland Inc. made two sales.

It sold land having a fair value of $902,220 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,419,656. The land is carried on Headland's books at a cost of $590,900.

It rendered services in exchange for a 3%, 8-year promissory note having a face value of $402,150 (interest payable annually).

Headland Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest.

Record the two journal entries that should be recorded by Headland Inc. for the sales transactions above that took place on July 1, 2020.

Reference no: EM132504812

Questions Cloud

Identify factors that influence supply chain network design : Identify factors that influence supply chain network design and how they affect Unilever ability to incorporate successful supply chain network in rural areas
What is a restrictive debt covenants : What is a restrictive debt covenants? Can we find these on which company's annual reports? What should be requirements and effects of these restrictive
What lessons might be drawn from the republican realignment : What lessons might be drawn from the Republican realignment that produced the party's current domination of the state government
Compute the increase or decrease in net income : Compute the increase or decrease in net income Cobb will realize by accepting the special order, assuming Cobb has excess operating capacity
Record the two journal entries : Record the two journal entries that should be recorded by Headland Inc. for the sales transactions above that took place on July 1, 2020
Classify the various investment avenues based on risk : Briefly explain the REPO and Reverse REPO as tools for open market operations. How does it influence the money supply in the market?
Strategy for engaging in global trade : How do countries use trade protectionism as a strategy for engaging in global trade.
How neurotransmitters are tied into information transmission : Explain how neurotransmitters are tied into information transmission and mood creation? Explain how the dopaminergic pathway stimulates motivation.
How your study would contribute to positive social change : Briefly describe the study you would like to conduct, including the characteristics of the participants in your sample (e.g., age, gender, race/ethnicity).

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine Contribution Margin Percentage

Frederick Company utilizes a JIT production system and there are no Raw Materials, Determine FY 2018 Contribution Margin Percentage

  At the vicksburg company actual sales are 1200000 and

at the vicksburg company actual sales are 1200000 and break-even sales are 840000. compute a the margin of safety in

  Analyze the need for unbiased financial reporting

Analyze the need for unbiased financial reporting

  What is his gross pay for the week

Assume 40 working hours in a week. Company policy requires he return commissions on sale returns. What is his gross pay for the week

  Compute each year current ratio

Selected comparative financial statements of Bennington Company follow. Compute each year's current ratio. Express the income statement data

  Prepare relevant ledger accounts to record the transactions

Prepare relevant ledger accounts to record the above transactions up to 30 June 2015. Ignore GST.

  Earnings for federal unemployment tax

The company incurred no cost related to these earnings for federal unemployment tax but incurred $777 for state unemployment tax.

  What level of sales is needed for a monthly profit of

1. beach rentals has estimated that fixed costs per month are 79200 and variable cost per dollar of sales is 0.52.a

  What cash outflow obligations related to the repayment

What cash outflow obligations related to the repayment of long-term debt does P&G have over the next 5 years?

  Impact of transaction on net operating income

ABC Company accepted a national credit card for a $2,500 purchase. The cost of the goods sold is $2,000. The credit card company charges a 3% fee. What is the impact of this transaction on net operating income?

  Calculate the average inventory amount

Zhang Company reported Cost of goods sold of $841,000, beginning Inventory of $38,400 and ending Inventory of $46,900. Calculate the average Inventory amount

  Opinion on the financial statements of midwest corporation

Burt, CPA, issued an unqualified opinion on the financial statements of Midwest Corp. These financial statements were included in Midwest's annual report, and Form 10-K was filed with the SEC. As a result of Burt's reckless disregard for GAAS, mat..

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