User Account

All Pages

What amount should be recorded as initial cost of machine

Assignment Help Accounting Basics
Reference no: EM133095591

Question - On December 31, 2019, Bessy Co. purchased a machine in exchange for a noninterest bearing note requiring eight payments of P200,000. The first payment was made on December 31, 2019 and the others are due annually on December 31. At date of issuance, the prevailing rate of interest for this type of note was 11%.

PV of ordinary annuity of 1 at 11% for 8 periods 5.146

PV of annuity of 1 in advance at 11% for 8 periods 5.712

Required -

1. What amount should be recorded as initial cost of the machine?

2. What is the discount on note payable on December 31, 2019?

3. What is the interest expense for 2020?

4. What is the carrying amount of the note payable on December 31, 2020?

Reference no: EM133095591

Questions Cloud

Prepare an amortization schedule : You borrow $1,600 initially and repay it in four equal annual year-end payments. Prepare an amortization schedule
Accenture-retaining for itself : Accenture is a firm that provides a wide range of consulting and services to organizations worldwide. With more than 170,000 employees, the firm has clients in
Creating the industry disruption : 1. What forces are creating the industry disruption and pushing the Swiss watch industry to change?
Write about current events and what they mean for government : Write about current events and what they mean for the U.S. government and its citizens. You have been asked to write a blog post
What amount should be recorded as initial cost of machine : At date of issuance, the prevailing rate of interest for this type of note was 11%. What amount should be recorded as initial cost of machine
State the cost-of-living allowance amount : Why did Bosch state the cost-of-living allowance amount as a CEHB-based sum and a separate cost-of-living supplement in the first and the second years of the as
What is the 6-pipeline model : What is the 6-pipeline model? What do you think is the handicap of this model and do you think it will still be applicable given the change in future digital bu
What is the carrying amount of the accounts receivable : The company's accounts receivable were $654,400 prior to recording the cash receipt for Wight. What is the carrying amount of the accounts receivable
What is the 6-pipeline model : What is the 6-pipeline model? What do you think is the handicap of this model and do you think it will still be applicable given the change in future digital bu

Reviews

Write a Review

Accounting Basics Questions & Answers

  Are the male and female compas equal to each other

1. Is either the male or female salary equal to the overall mean salary? 2. Are the male and female salaries statistically equal to each other? 3. Are the male and female compas equal to each other?

  Find the amount of joint production costs

The standard style for $4 per door handle and the curved style for $2 per door handle. Find the amount of joint production costs

  Does the warranty accrual decision make any ethical dilemma

Cameron Bly is a sales manager for an automobile dealership. Does the warranty accrual decision make any ethical dilemma for Bly

  The jury in the medtrans deloitte lawsuit ruled

The jury in the MedTrans v. Deloitte lawsuit ruled that the accounting firm negligently resigned from the 1992 audit, breached its contract with the client, and made defamatory statements regarding MedTrans' former executives during the predece..

  What will be the cost of goods sold after the proration

If the under- or overapplied overhead is prorated between Cost of Goods Sold and the inventory accounts, what will be the Cost of Goods Sold after the proration

  Determine the IRR of the project

Question - Given the following net cash flows, determine the IRR of the project

  What is the probability of having no customers at the ATMs

A bank has four ATMs. During peak demand periods, During these periods, what is the probability of having no customers at the ATMs

  Unethical practices and behavior in accounting

Write a 500-word article analysis in which you identify situations that might lead to unethical practices and behavior in accounting.

  Compare the level of capital spending across the two firms

Next, compare the level of capital spending across the two firms. Point out how the spending was similar and/or different and speculate why the similarities.

  What the share capital of blue ltd on june was

What the share capital of Blue Ltd on 30 June 2019 was? Prepare journal entries to record the following transactions in the records of Blue Ltd.

  Prepare the journal entry to record the estimated

Prepare the current assets section of the balance sheet for Henley Company. Assume that in addition to the receivables it has cash of $90,000, merchandise inventory of $130,000, and prepaid expenses of $7,500.

  Prepare the entry to reflect the estimated loss

Gage suspects some inventory may have been shoplifted. Prepare the entry, if necessary, to reflect the estimated loss from any shoplifted items

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