Riley, Inc., a calendar year firm, buys equipment, signing a 3 year, $750,000, non-interest bearing note, on
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Riley, Inc., a calendar year firm, buys equipment, signing a 3 year, $750,000, non-interest bearing note, on 9/30/20A.The equipment has a fair value at signing of $629,715.Please provide the entry for the initial purchase for Riley.What is the entry for interest accrued on the note at 12/31/20A?What is Riley's incremental borrowing rate at signing?Interest is accrued annually.
9/30/20A Entry:
12/31/20A entry:
What entry is made on 9/30/20B?
What is the present value of the note after the accrual for interest on 9/30/20B?
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
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