User Account

All Pages

Record the two journal entries that should be recorded

Assignment Help Accounting Basics
Reference no: EM131697528

Question - On January 1, 2017, Splish Company makes the two following acquisitions.

1. Purchases land having a fair value of $250,000 by issuing a 5-year, zero-interest-bearing promissory note In the face amount of $421,265.

2. Purchases equipment by issuing a 7%, 9-year promissory note having a maturity value of $420,000 (Interest payable annually on January 1).

The company has to pay 11% interest for funds from its bank.

a) Record the two journal entries that should be recorded by Splish Company for the two purchases on January 1, 2017.

b) Record the Interest at the end of the first year on both notes using the effective-interest method.

Reference no: EM131697528

Questions Cloud

How the issue could have been avoided : Assessments should include the origins and root causes of the ethical issue, how the issue could have been avoided or how it could be ameliorated.
What is the importance of employee performance : MGT 301 - Organizational Behavior - Prepare an essay on Motivation - Employee motivation related to employee performance in the organization
Determine key roles that human resource management plays : Analyze the role of human resource management in an organization's strategic plan.Determine key roles that human resource management plays.
Sample to have wolbachia band : How could it possible for the sample to have wolbachia band, but for the sample to have actually have had wolbachia
Record the two journal entries that should be recorded : Record the two journal entries that should be recorded by Splish Company for the two purchases on January 1, 2017
By how much will profit increase or decrease : Should Smooth Move accept the special order? By how much will profit increase or decrease if the order is accepted?
Identify at least three benefits of cardiovascular exercise : 1. Identify at least three benefits of cardiovascular exercise. 2. Identify at least three benefits of muscular strength and endurance training.
Develop a brief plan to recruit for 20 nursing positions : Develop a brief plan to recruit for 20 nursing positions for your organization, using both internal and external recruiting sources.
Compile two examples of the worst interviews you ever had : A health care organization wants to hire 100 medical technicians, and of the 250 applicants that apply, 125 are male and 125 are female-all equally qualified.

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