At January 1, 2011, Brant Cargo acquired equipment by issuing a five-year, $150,000 (payable at maturity), 4%

Question:

At January 1, 2011, Brant Cargo acquired equipment by issuing a five-year, $150,000 (payable at maturity), 4% note. The market rate of interest for notes of similar risk is 10%

Required:

1. Prepare the journal entry for Brant Cargo to record the purchase of the equipment.

2. Prepare the journal entry for Brant Cargo to record the interest at December 31, 2011.

3. Prepare the journal entry for Brant Cargo to record the interest at December 31, 2012.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate Accounting

ISBN: 978-0077400163

6th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

See More Books

Question Posted: Jan 08, 2013 05:37 AM

See More Questions

At January 1, 2018, Brant Cargo acquired equipment by issuing a five-year, $150,000 (payable at maturity), 4% note. The market rate of interest for notes of similar risk is 10%. Required: 1. Prepare...
For a bond when the market rate of interest is greater than the face rate of interest: (a) Describe the cash outflows shown on the budgeted cash flow statement over the life of the note. (b) Describe...
For a bond when the market rate of interest is less than the face rate of interest: (a) Describe the cash outflows shown on the budgeted cash flow statement over the life of the note. (b) Describe...
Transform the following product by making the change of variable i = k + 1. k So when k and K +2 When k = 1, then i = n k II k +2 k = 1 = n+ 1 II i = 2 are expressed in terms of i, the results are k...
The growth of a population of water fungus is modeled by the function y = f (x) = 2.68(3.84)x where x represents the number of hours elapsed and y represents the number of fungi spores. a. How many...
SupposethatthecentralbankintheUK(TheBankofEngland)decidestoraiseinterestratesbecauseitisworriedabouthighinflation.Asaresult,interestratesintheUKbecomehigherthaninterestratesintheRESTOFEUROPE.Thisactsa...
Discuss similarities and differences among three process theories.
Yuma Foods acquired Aldos Tortillas several years ago. Aldos has continued to operate as an independent company, except that Yuma Foods has exclusive authority over capital investments, production...
16 5 point The Casings Plant of Wyoming Machines makes plastics shells for the company's calculators (Each calculator requires one shell) For each of the next two years. Wyoming expects to sell...
The proposed rates were not in the range the CEO expected given the pricing analysis. The CEO has asked the pricing actuary to verify the total projected loss cost excluding potential large storm...
For the year ended on December 31, 2010, XYZ had net income of $90,000 and paid dividends of $40,000. Prepare the journal entries to record the result using EQUITY METHOD of accounting. Show your...
In 2011, KZF Inc. purchased stock as follows: (a) Acquired 2,000 shares of Gallery Arts Corp. common stock (par value $20) in exchange for 1,200 shares of KZF Inc. preferred stock (par value $30)....
What are the three stages of the international product life cycle theory? Identify its limitations.
Repeat Prob. 10-18 for signed-magnitude binary numbers. Prob. 10-18 Derive an algorithm in flowchart form for the comparison of two signed binary numbers when negative numbers are in signed-2's...
Tideview Home Health Care, Inc., has a bond issue outstanding with eight years remaining to maturity, a coupon rate of 10 percent with interest paid annually, and a par value of $1,000. The current...
Captain Billy Whirlywhirl Hamburgers issued 7%, 10-year bonds payable at 70 on December 31, 2010. At December 31, 2012, Captain Billy reported the bonds payable as follows: Captain Billy Whirlywhirl...
Two scenarios about the future of the global economy in 2050 have emerged. Known as continued globalization, the first scenario is a (relatively) rosy one. Spearheaded by Goldman Sachs, whose...
Visit www.pearsonglobaleditions.com/malhotra to read the video case and view the accompanying video. Nike: Associating Athletes, Performance, and the Brand highlights Nike's use of marketing research...
In which countries do these potential customers live?
d) For die casting processes: 1. What are the most common metals processed using die casting and discuss why other metals are not commonly die casted? 2. Which die casting machines usually have a...
Find ways to expand your LinkedIn network. If you havent already, consider syncing your email address book to get recommendations for connections. Spend time thinking about everyone in your life:...
Prepare a journal entry on July 9 for fees earned on account, $12,000.
Prepare a journal entry on August 13 for cash received for services rendered, $9,000.
Prepare a journal entry on August 13 for cash received for services rendered, $9,000.
The Regal Cycle Company manufactures three types of bicyclesa dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes...
?? A local college is deciding whether to conduct a campus beautification initiative that would imvolve various projects, such as planting trees and remodeling bulidings, to make the campus more...
A company has net income of $196,000, a profit margin of 9.7 percent, and an accounts receivable balance of $135,370. Assuming 70 percent of sales are on credit, what is the companys days sales in...

At January 1, 2011, Brant Cargo acquired equipment by issuing a five-year, $150,000 (payable at maturity), 4%

Question:

Step by Step Answer:

tr msoheightsourceauto col msowidthsourceauto br msodataplacementsamecell style45 msonumberformat00220022 00000220022 00000220022 00220022 msostylenam...View the full answer

Intermediate Accounting

Students also viewed these Accounting questions