Show Globaltel journal entry to record its purchase of land

Assignment Help Accounting Basics
Reference no: EM133121567

Question - Globaltel Corporation puchased a plot of land for $100,000 in cash and a $600,000 face amount zero-interest bearing note payable to the seller. On the date of the transaction, the present value of the note at the market rate of interest for similar debt was $495,900, which equals its fair value. A recent appraisal of the land valued it at $625,000.

Required - Show Globaltel's journal entry to record its purchase of the land.

Reference no: EM133121567

Questions Cloud

What is the dollar cost of debt : The Copper Mountain Group, a private equity firm headquartered in Boulder, Colorado (US), borrows £5,000,000 for one year at 7.395% interest.
Russian-ukrainian crisis : What impact do you expect due to the "Russian-Ukrainian crisis" in terms of cryptocurrency valuation? In doing so, address both microeconomic and macroeconomic
What is the optimal hedge ratio : You have been working as a futures trader at Deutsche Bank, New York. You have collected the following information on Lean Hog. The standard deviation of monthl
What is mmm beta from regression : Below is the 60 months of monthly data on the excess returns on MMM Company and the US stock market. Run a linear regression (SCL regression) of the returns on
Show Globaltel journal entry to record its purchase of land : A recent appraisal of the land valued it at $625,000. Show Globaltel's journal entry to record its purchase of the land
Retirement of all of vitrex debt : Assume that Hi-Tech LLC operates in the tech industry. The company has an estimated beta of 1.75 and is planning on merging with Vitrex, a company that operates
Abnormal earnings model analysis : The company's actual Book Value and its forecasted earnings and dividends as well their actual and forecasted numbers of shares are given below. The expected gr
What is the correct amount of bond interest expense : Interest is paid annually on December 31. What is the correct amount of bond interest expense to be recorded on December 31, 2022 using GAAP
Prepare a summary cash flow budget : Prepare a Summary (by year) Cash Flow budget for the ten years estimated to pay for this project. How much in total will the City Band trustees need to pay

Reviews

Write a Review

Accounting Basics Questions & Answers

  Why will bonds always sell at their price plus any interest

Why will bonds always sell at their price plus any interest that has accrued since the last interest date?

  Compute the traditional payback period

Compute both the traditional payback period (PB) and the discounted payback period (DPB) for a project that costs $270,000

  Prepare the statement of partners capital for the year

Partners A and B each began the year with a capital account of $750,000. Prepare the Statement of Partners' Capital for the year

  If the auditor tests controls only at a particular point in

if the auditor tests controls only at a particular point in time then the auditor only obtains evidence that the

  What is the actual value of the stock today

You think Tesla will grow by 50% this year, 30% next year, 20% the following year and then grow by 8% per year forever. What is the actual value of the stock

  What would happen if both GAAP and IFRS adopted

What would happen if both GAAP and IFRS adopted fair value accounting? Consider both our consolidation work and international matters

  Calculating the balance of capital account

Sold goods to AB Ltd valued $1,000, customer paid by cheque $400. Calculating the balance of Capital account as at 1 December, 20X8

  Journalize the entries in the partnership accounts

The partners agree that the equipment is to be valued at $67,900, Journalize the entries in the partnership accounts for Jesse's investment and Tim's investment

  Prepare the journal entries on december 28 and january 6

VTC paid the net-of-discount amount on January 6, 2012. Prepare the journal entries on December 28 and January 6 to record the purchase and payment.

  What is enterprise value-EBITDA multiple for this company

The market value of the equity of Ginger, Inc., is $590,000. What is the enterprise value-EBITDA multiple for this company

  Discuss why concepts of leverage important for managers

Discuss Why are the concepts of leverage and break-even important for managers to understand in order to achieve the goals of Saudi Vision 2030?

  Indicate the fund in which each transaction amount is record

The following transactions and events occurred in East Fritzsch Township Record these transactions in journal form indicate the fund in which each transaction amount is recorded

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