The Houston Corporation acquires machinery from the South Company in exchange for a $20,000 non-interest-bearing, five-year note
Question:
The Houston Corporation acquires machinery from the South Company in exchange for a $20,000 non-interest-bearing, five-year note on June 30, 2009. The note is due on June 30, 2014. The machinery has a fair value of $11,348.54, is subject to straight-line depreciation, and has an estimated life of 10 years (no residual value). Houston’s fiscal year ends June 30.
Required
Prepare the journal entries on each of the following dates to record the preceding information for Houston Corporation:
1. June 30, 2009
2. June 30, 2010
3. June 30, 2011
4. June 30, 2012
5. June 30, 2013
6. June 30, 2014
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
1 2009 June 30 Machinery 1134854 Discount on Notes Payable 865146 Notes Payable 2000000 Present valu...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
2+ Reviews
10+ Question Solved
Related Book For 
Intermediate Accounting
ISBN: 978-0324659139
11th edition
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
Question Posted:
