On December 31, 2022, Shamrock plc acquired a computer from Plato Group by issuing a £606,000 zero-interest-bearing note, payable in full on December 31, 2026. Shamrock's credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a £65,000 residual value. (a) Prepare the journal entry for the purchase on December 31, 2022. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to O decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date December 31, 2022 Account Titles and Explanation Debit Credit

On December 31, 2022, Shamrock plc acquired a computer from Plato Group by issuing a £606,000 zero-interest-bearing note, payable in full on December 31, 2026. Shamrock's credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a £65,000 residual value. (a) Prepare the journal entry for the purchase on December 31, 2022. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to O decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date December 31, 2022 Account Titles and Explanation Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On December 31, 2020, Martinez Company acquired a computer from Plato Corporation by issuing a $564,000 zero-interest-bearing note, payable in full on December 31, 2024. Martinez Company's credit rating permits it to borrow funds from its several lines of credit at 12%. The computer is expected to have a 5-year life and a $73,000 salvage value. (a) Your answer is correct. Prepare the journal entry for the purchase on December 31, 2020. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to O decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date December 31, 2020 Account Titles and Explanation Equipment Discount on Notes Payable Notes Payable Debit 358422 205578 Credit 564000
(e) On December 31, 2015, Malton Company acquired a computer from Hamilton Corporation by issuing a $600,000 zero-interest-bearing note, payable in full on December 31, 2019. Malton Company’s credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a $70,000 residual value. Prepare the journal entry for the purchase on December 31, 2015 and any necessary adjusting entries relative to depreciation (use straight-line) and amortization on December 31, 2016.
On December 31, 2020, Faital Company acquired a computer from Plato Corporation by issuing a $600,000 zero-interest-bearing note, payable in full on December 31, 2024. Faital Company's credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a $70,000 salvage value. Instructions (Round answers to the nearest cent.) a. Prepare the journal entry for the purchase on December 31, 2020. b. Prepare any necessary adjusting entries relative to depreciation (use straight-line) and amortization (use effective-interest method) on December 31, 2021. c. Prepare any necessary adjusting entries relative to depreciation and amortization on December 31, 2022.
On December 31, 2020, Pearl Limited acquired a machine from Pronghorn Corporation by issuing a $520,000, non–interest-bearing note that is payable in full on December 31, 2024. The company’s credit rating permits it to borrow funds from its several lines of credit at 10%. The machine is expected to have a five-year life and a $80,000 residual value.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. Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, calculate the value of the note and prepare the journal entry for the purchase on December 31, 2020. (Hint: Refer to Chapter 3 for tips on calculating and use the amount arrived at by using the time value of money tables for the journal entry.) Please help with the solution in excel
Tamarisk Corporation purchased a computer on December 31, 2024, for $138,600, paying $39,600 down and agreeing to pay the balance in five equal installments of $19,800 payable each December 31 beginning in 2025. An assumed interest rate of 9% is implicit in the purchase price. (a) Your answer is partially correct. Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g. 52.75. 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. List all debit entries before credit entries.) Date ec. 31, 2024 Account Titles and Explanation Equipment Discount on Notes Payable Notes Payable Cash Debit 126126 12474 Credit 99000 39600
Tamarisk Corporation purchased a computer on December 31, 2024, for $138,600, paying $39,600 down and agreeing to pay the balance in five equal installments of $19,800 payable each December 31 beginning in 2025. An assumed interest rate of 9% is implicit in the purchase price. (a) Your answer is partially correct. Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g. 52.75. 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. List all debit entries before credit entries.) Date :. 31, 2024 Account Titles and Explanation Equipment Discount on Notes Payable Notes Payable Cash Debit 116615.00 21985.00 Credit 0 99000 39600
Date 12/31/25 12/31/26 12/31/27 12/31/28 12/31/29 Schedule of Note Discount Amortization Debit Interest Expense / Credit Discount on Notes Payable $ Carrying Value of Note
On December 31, 2025, Cullumber Company acquired a computer from Plato Corporation by issuing a $614,000.00 zero-interest- bearing note, payable in full on December 31, 2029. Cullumber Company's credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a $76,000 salvage value. Click here to view factor tables. (a) Prepare the journal entry for the purchase on December 31, 2025. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 2 decimal places, eg. 58,971.23. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation December 31,2025 eTextbook and Media List of Accounts Debit Credit
Teari Company purchased a machine on September 1, 2021. The purchase agreement required Teari to pay an initial fee payment of P700,000 plus four P300,000 payments due every four (4) months, the first payment due December 31, 2021. The market interest rate is 12%. The present and future value tables at 4% for four (4) periods were as follows: Present value of P 1, 0.85; Present value of an ordinary annuity of P1, 3.63; Future value of P 1, 1.17, Future value of an ordinary annuity of P1, 4.25. What is the fair value of the note on December 31, 2021.
Concord Corporation purchased a computer on December 31, 2024, for $115,500, paying $33,000 down and agreeing to pay the balance in five equal installments of $16,500 payable each December 31 beginning in 2025. An assumed interest rate of 10% is implicit in the purchase price. Prepare the journal entry at December 31, 2025, to record the payment and interest (effective-interest method employed). (Round answers to 2 decimal places, e.g. 52.75. 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. List all debit entries before credit entries.) Date Account Titles and Explanation c. 31, 2025 Interest Expense Notes Payable Cash Discount on Notes Payable Debit 6600 16,500 Credit 6600 16500 Prepare the journal entry at December 31, 2026, to record the payment and interest (effective-interest method employed). (Round answers to 2 decimal places, e.g. 52.75.…
On December 31, 2025, Novak Company acquired a computer from Plato Corporation by issuing a $548,000.00 zero-interest-bearing note, payable in full on December 31, 2029. Novak Company's credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a $64,000 salvage value. Click here to view factor tables. (a) ✓ Your answer is correct. Prepare the journal entry for the purchase on December 31, 2025. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 2 decimal places, e.g. 58,971.23. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) (b) Date December 31, 2025 - eTextbook and Media List of Accounts Date December 31, 2026 Your answer is partially correct. December 31, 2026 Date…
On September 1, 2021, Confused Company purchased a machine. The purchase agreement required Confuse to pay an initial fee payment of P700,000 plus four P300,000 payments due every four (4) months, the first payment due December 31, 2021. The market interest rate is 12%. The present and future value tables at 4% for four (4) periods were as follows: Present value of P 1, 0.85; Present value of an ordinary annuity of P1, 3.63; Future value of P 1, 1.17, Future value of an ordinary annuity of P1, 4.25. What is the fair value of the note on December 31, 2021?