Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 2.00 points exercise 14-18 note with unrealistic i

2.00 points Exercise 14-18 Note with unrealistic interest rate; lender; amortization schedule [LO14-3 Amber Mining...

50.1K

Verified Solution

Question

Accounting

image
image
2.00 points Exercise 14-18 Note with unrealistic interest rate; lender; amortization schedule [LO14-3 Amber Mining and Miling, Inc, oontracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2016. Amber paid for the lathe by a$750,000, threeyear note t specified 4% interest, payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that 12% was a reasonable rate of interest. (EyofS1. PyofSI, AAofS1. PVAof$1. BADofS1 and PVAD 0 1) (Use appropriate factor(s) from the tables provided.) 1-a. Complete the below table to prepare the company's journal entry. 2.054 $ 750,000533,835 605,889 Price of machinery 1-b. Prepare the joumal entry on January 1, 2016, for Truax Corporation's sale of the lathe (If no entry s required for a transactionlevent, select "No journal entry required" in the first account field.) View transaction list Vilew journal entry worksheet Date 2016Cash 750,000 605,889 Alowance for 144,111 esc FI 0 F3 FS F7 2 4

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Find the solutions of y'' + 4y' + 3y = sen(x) + 3 cos(2x) + e˄(−x)+...

Basic Math
Q

Let n > 5. A deck containing 4n cards has exactly n cards each of four...

Advance Math
Q

Bunker makes two types of briefcase, fabric and leather. The company is currently using a traditional...

Advance Math
Q

2. The Queen City Style Company makes several lines of skirts, dresses, and sport coats. Recently,...

Operations Management
Q

1. Describe in detail how a protein-encoding gene in a eukaryote is transcribed as mRNA, and...

Biology
Q

For the compounds present, list all intermolecular forces present and then rank the compounds in order...

Chemistry
Q

Explain how analysis of DNA sequences gives evidence for evolution

Biology
Q

Deb Cook is given the choice of two positions, one paying $3,200 per month and...

Algebra
Q

The income statement for the Blue Spruce Golf Club inc, for the month ended July...

Accounting
Q

HC15 3.)'?

Accounting
Q

TABLE I Kitchen Electrics Sales Patterns and Projections (individual units) Product Type 1. Irons 2....

Accounting
Q

10) An account that measures the amount of income taxes incurred might include which of...

Accounting