On January 1, 2025, Sunland Company makes the two following acquisitions 1 Purchases and having a fair value of $250,000.00 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $421.265. 2 Purchases equipment by issuing a 6%, 9-year promissory note having a maturity value of $380,000.00 (interest payable annually) The company has to pay 11% interest for funds from its bank Click here to view factor tables Record the two journal entries that should be recorded by Sunland 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. (Round present value factor calculations to 5 decimal places, eg 1.25124 and the frial anwer to 2 decimal places, eg. 58,971.25. 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) No. Date Account Titles and Explanation Debit
On January 1, 2025, Sunland Company makes the two following acquisitions 1 Purchases and having a fair value of $250,000.00 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $421.265. 2 Purchases equipment by issuing a 6%, 9-year promissory note having a maturity value of $380,000.00 (interest payable annually) The company has to pay 11% interest for funds from its bank Click here to view factor tables Record the two journal entries that should be recorded by Sunland 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. (Round present value factor calculations to 5 decimal places, eg 1.25124 and the frial anwer to 2 decimal places, eg. 58,971.25. 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) No. Date Account Titles and Explanation Debit
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 3MC: On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9%...
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