Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, blue spruce corp. lent $ 53,000 to l

On January 1, Blue Spruce Corp. lent $ 53,000 to Larkspur, Inc., accepting Larkspur's $...

60.1K

Verified Solution

Question

Accounting

imageimage

On January 1, Blue Spruce Corp. lent $ 53,000 to Larkspur, Inc., accepting Larkspur's $ 70,543, three-year, zero-interest-bearing note. The implied interest is 10%. (a) Prepare Blue's journal entries for the initial transaction, recognition of interest each year assuming use of the effective interest method, and the collection of $ 70,543 at maturity. (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.) Account Titles and Explanation Debit Credit (To record initial transaction) (To record interest income in the first year) (To record interest income in the second year) (To record interest income in the third year) (To record collection at maturity)

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

What types of job-related stress have you personally experienced or witnessed? How did you manage or...

General Management
Q

Which of the following viruses would you expect to have the broadest range of host...

Biology
Q

The Social Security Administration documented the marriage year of various couples along with the number...

Statistics
Q

Rewrite with rational exponents 5 xy z 3

Calculus
Q

szoz Buude jQueUQUL 000 LILINPIAL

Algebra
Q

If 10 7 what does 10 x equal 10 x Tyne a reduced fraction

Algebra
Q

Q2 6 points Calculate V12 numerically by using Newton Raphson and Secant methods Use initial...

Algebra
Q

Elaines original basis in the Hornbeam Partnership was $30,000. Her share of the taxable income...

Accounting
Q

On 1 April 2019, Lisa borrowed $47204 at an interest rate of 2.37% from her...

Accounting
Q

Art House Ltd is reviewing its deferred tax for the year. 1. The company purchased...

Accounting
Q

The standard variable overhead cost rate for the Croskey Company is $12 per unit. Budgeted...

Accounting
Q

A corp. is a Korean exporting company and is scheduled to receive US dollars in...

Finance