Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1,2025, crane company makes the two fol

On January 1,2025, Crane Company makes the two following acquisitions. Purchases land having...

90.2K

Verified Solution

Question

Accounting

On January 1,2025, Crane Company makes the two following acquisitions.
Purchases land having a fair value of $310,000.00 by issuing a 4-year, zero-interest-bearing promissory note in the face
amount of $470,601.79.
Purchases equipment by issuing a 6%,9-year promissory note having a maturity value of $340,000.00(interest payable
annually).
The company has to pay 11% interest for funds from its bank.
Click here to view factor tables.
(a) Record the two journal entries that should be recorded by Crane Company for the two purchases on January 1,2025.
(b) Record the interest at the end of the first year on both notes using the effective-interest method.
image

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

*** PLEASE SHOW HOW TO SOLVE IN EXCEL*** Case Problem 2:        Finding the Best Car Value (Copy the worksheet...

Statistics
Q

Johnson Computers repairs computers, along with selling and installing software on computers. Brian handles the repairs...

Accounting
Q

Select two product names and then evaluate each with respect to the six rules for naming...

General Management
Q

The lagging strand is replicated with a series of Okazaki fragments and that is why...

Biology
Q

The diffusion current in p n junction is From n side to p side From...

Physics
Q

Given AJKL ANMP find the value of x K P x 5 17 14 M...

Geometry
Q

More Complicated Prisms Anas Al Tibawi A triangular pris

Geometry
Q

Evaluate the following expression for x = 1, y =3, and z = 3.xy(3+z-x)The answer...

Algebra
Q

please help with the wrong answers! Required information [The following...

Accounting
Q

Mention the Principles for Defining Report Quality (based on GRI Standards or G4 Guideline). Give...

Accounting
Q

14A A company sold equipment that originally cost $310,000 for $186,000 cash. The accumulated depreciation...

Accounting
Q

Q16) What is the most that you would pay for an investment that promises to...

Finance