Bonita Corporation purchased a truck by issuing an $107,200, 5-year, zero-interest-bearing note to Equinox Inc. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Bonita Corporation purchased a truck by issuing an $107,200, 5-year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 9%. Prepare the journal entry to record the purchase of this truck. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Bonita Corporation purchased a truck by issuing an $107,200, 5-year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 9%. Prepare the journal entry to record the purchase of this truck. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
If the amplitude of a damped oscillator decreases to 1/e of its initial value after n periods, show that the frequency of the oscillator must be approximately [1 = (82n2)1] times the frequency of the...
-
Spratley Ltd is a builders merchant. On 1 September the business had, as part of its inventories, 20 tonnes of sand at a cost of 18 per tonne and, therefore, at a total cost of 360. During the first...
-
The auditors for Weston University are conducting their audit for the fiscal year ended December 31, 2013. Specifically, the audit firm is now focusing on the audit of revenue from this seasons home...
-
The financial statements for Armstrong and Blair companies are summarized here: Armstrong Company Blair Company Balance Sheet Cash $ 35,000 $ 22,000 Accounts Receivable, Net 40,000 30,000 Inventory...
-
Jamie Lee is reviewing her finances one month later. She has provided the actual amounts paid below. Use the cash budget table below to help her identify the variances in her budget. Each answer must...
-
In an epicyclic gear train (Fig.15.41) an annular wheel 'A' having 54 teeth meshes with a planet wheel 'B' which gears with a sun wheel 'C', the wheels 'A' and 'C' being co-axial. The wheel B is...
-
Differentiate. 6 y=x In x - 1 x 2 dy dx = 0
-
You have obtained data in an WGS84 (CSRS), UTM coordinate system (zone17) and wish to include it in a project in a WGS84 (CSRS), MTM coordinate system. Describe conceptually the operations that you...
-
A company predicted that it would manufacture 10,000 units of finished goods during March. The direct labor standards indicated that each unit of finished goods requires 2.4 direct labor hours at a...
-
1. Conde Inc. has projected sales to be: February, $20,000; March, $18,000; April, $16,000; May, $20,000; and June, $22,000. Conde has 30% cash sales and 70% sales on account. Accounts are collected...
-
Read the following scenarios and choose a suitable combination of input and output devices to best support the intended interaction. It may help to identify typical users or classes of user and...
-
When costs are rising, which method reports higher net incomeLIFO or FIFO?
-
Describe one advantage for each of the inventory costing methods: specific identification, FIFO, LIFO, and weighted average.
-
Use LCM applied separately to individual items to compute ending inventory if the data are as follows: Product Units Unit Recorded Cost Unit Market Cost A..... 20 $6 $5 B 40 9 8 C.... 10 12 15
Study smarter with the SolutionInn App