Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

View Policies Current Attempt in Progress Sandhill Engineering Corporation purchased conveyor equipment with a list price of $50.700. Three Independent cases that are related to

image text in transcribed
image text in transcribed
image text in transcribed
View Policies Current Attempt in Progress Sandhill Engineering Corporation purchased conveyor equipment with a list price of $50.700. Three Independent cases that are related to the equipment follow. Assume that the equipment purchases are recorded gross 1. 2 Geddes paid cash for the equipment 25 days after the purchase, along with 5% GST (recoverable) and provincial sales tax of $3,549, both based on the purchase price. The vendor's credit terms were 1/10, 1/30. Geddes traded in equipment with a book value of $2,800 (initial cost $41,600) and paid $42.500 in cash one month after the purchase. The old equipment could have been sold for $6.700 at the date of trade but was accepted for a trade-in allowance of $8.200 on the new equipment. Geddes gave the vendor a $9.900 cash down payment and a 8% note payable with blended principal and interest payments of $20,400 each, due at the end of each of the next two years. 3. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1 (a) Prepare the general journal entries to record the acquisition and the subsequent payment, including any notes payable, in each of the three independent cases above. For item 3, use a table, financial calculator, or Excel. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is for the amounts Round factor values to VALUE OF AN ANNUITY OF 1. (a) Prepare the general journal entries to record the acquisition and the subsequent payment, including any notes payqble, in each of the three independent cases above. For item 3, use a table, financial calculator, or Excel. (Credit account titles are automatically indented when the 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. Round factor values to 5 decimal places, e.3. 1.25124 and final answers to 0 decimal places, eg. 5,275.) Account Tities and Explanation Debit Credit 1. (To record purchase of equipment on credit.) = TO PRO purchase or equipment on (To record payment to the vendor) 2 (To record exchange of equipment.) (To record payment to the vendor) 3 (To record purchase of equipment on credit.) First Payment on Note (To record payment to the vendor) Second Payment on Note (To record payment to the vendor) cewakand Media

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Employment, Hours, And Earnings 2010 States And Areas

Authors: Sarah E. Baltic

5th Edition

1598884190, 9781598884197

More Books

Students also viewed these Accounting questions

Question

Is there any other possible conclusion?

Answered: 1 week ago