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On January 1 , 2 0 X 1 , Wade Crimbring, Inc., a dealer in used manufacturing equipment, sold a CNC milling machine to Fletcher
On January X Wade Crimbring, Inc., a dealer in used manufacturing equipment, sold a CNC milling machine to Fletcher Bros., a new business that plans to fabricate utility trailers. To conserve cash, Fletcher paid for the machine by issuing a $ note, payable in five years. Interest at is payable annually with the first payment due on December The going rate for loans of this type is Use the PV of PVAD of and PVOA of tables where appropriate. Use the appropriate factors from the tables provided. Required: a What is the total present value of the note for Crimbring's sale of the machine on January X b Prepare the entry that Crimbring would make for the sale of the machine. Prepare the entry that Crimbring would make on December X to record the receipt of the first interest payment. Assume that Crimbring opted to carry this note at its fair value. What should be the value of the note on Crimbring's December X balance sheet if the market interest rate is then Assume that the December payment has been made. Prepare the entry that Crimbring would make on December X to record the note at its fair value. Req Req Prepare the entry that Crimbring would make for the sale of the machine. If no entry is required for a particular transaction, select No journal entry required" in the first account field. Round your intermediate calculations and final answers to the nearest whole dollars. Journal entry worksheet Record the entry for the sale of machine by issuing a note. Note: Enter debits before credits. tableTransactionGeneral Journal,Debit,Credita
On January X Wade Crimbring, Inc., a dealer in used manufacturing equipment, sold a CNC milling machine to Fletcher Bros., a new business that plans to fabricate utility trailers. To conserve cash, Fletcher paid for the machine by issuing a $ note, payable in five years. Interest at is payable annually with the first payment due on December The going rate for loans of this type is Use the PV of PVAD of and PVOA of tables where appropriate. Use the appropriate factors from the tables provided.
Required:
a What is the total present value of the note for Crimbring's sale of the machine on January X
b Prepare the entry that Crimbring would make for the sale of the machine.
Prepare the entry that Crimbring would make on December X to record the receipt of the first interest payment.
Assume that Crimbring opted to carry this note at its fair value. What should be the value of the note on Crimbring's December X balance sheet if the market interest rate is then Assume that the December payment has been made.
Prepare the entry that Crimbring would make on December X to record the note at its fair value.
Req
Req
Prepare the entry that Crimbring would make for the sale of the machine. If no entry is required for a particular transaction, select No journal entry required" in the first account field. Round your intermediate calculations and final answers to the nearest whole dollars.
Journal entry worksheet
Record the entry for the sale of machine by issuing a note.
Note: Enter debits before credits.
tableTransactionGeneral Journal,Debit,Credita
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