atly had to pay 8% interest for money that it borrowed from British Nation credit ratings that require them to borrow money at 12% interest.
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![On July 1, 2025, Concord Inc. made two sales.
1.
It sold land having a fair value of $907,040 in exchange for a 4-year zero-interest-bearing promissory note in the face amount
of $1,427,241. The land is carried on Concord's books at a cost of $596,000.
2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $406,680 (interest payable annually).
Concord Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two
transactions have credit ratings that require them to borrow money at 12% interest.
Record the two journal entries that should be recorded by Concord Inc. for the sales transactions above that took place on July 1.
2025. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g.
5,275. 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.
1.
2.
Date
July 1,
2025
July 1,
2025
Account Titles and Explanation.
Debit
Credit
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- On July 1, 2020, Agincourt Inc. made two sales. 1. It sold land having a fair value of $700,000 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,101,460. The land is carried on Agincourt’s books at a cost of $590,000. 2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $400,000 (interest payable annually). Agincourt Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest. Instructions Record the two journal entries that should be recorded by Agincourt Inc. for the sales transactions above that took place on July 1, 2020.On July 1, 2020, Splish Inc. made two sales. 1. It sold land having a fair value of $909,120 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,430,514. The land is carried on Splish's books at a cost of $597,100. 2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $401,050 (interest payable annually). Splish Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest.Record the two journal entries that should be recorded by Splish Inc. for the sales transactions above that took place on July 1, 2020.On July 1, 2020, Marin Inc. made two sales: 1. It sold excess land in exchange for a four-year, non–interest-bearing promissory note in the face amount of $1,165,880. The land’s carrying value is $640,000. 2. It rendered services in exchange for an eight-year promissory note having a face value of $480,000. Interest at a rate of 2% is payable annually. The customers in the above transactions have credit ratings that require them to borrow money at 11% interest. Marin recently had to pay 7% interest for money it borrowed from British Bank. 3. On July 1, 2020, Marin also agreed to accept an instalment note from one of its customers in partial settlement of accounts receivable that were overdue. The note calls for four equal payments of $21,000, including the principal and interest due, on the anniversary of the note. The implied interest rate on this note is 9%. Required: 1. Prepare the journal entries to record the three notes receivable transactions of Marin…
- on July 1, 2010, Rentoul Inc made two sales1. It sold land haveing a fair market value of $900,000 in exchange for a 4-year non-interest-bearing promissory note in the face amount of $1,416,163. The land is carried on Rentoul's books at a cost of $590,000.2. It rendered services in exchange for a 3% 8-year promissory note having a face value of $400,000 ( Interest payable annually)Rentoul Inc. recently had to pay 8% interest for money that it borrowed from British national bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest.Record the two journal entries that should be recorded by Rentoul inc. for the sales transactions above that took place on July 1, 2010. Do not give answer in image formateOn January 1, 20x1, Diminished Co. paid cash down payment of P400,000 and issued a noninterest bearing note of P1,800,000 in exchange for a piece of land. The note is due in three equal annual installments every December 31. Case 1: The land has a fair value of P2,000,000. Provide entry on initial recognition. Case 2: The fair value of the land cannot be determined reliably. The prevailing market rate of interest for similar debt instruments in 9% . Provide the journal entry on initial recognition and the entries for the subsequent payments on the note.On June 1, 2021, Blossom & Sons sold equipment to James Landscaping Service in exchange for a zero-interest bearing note with a face value of $94800, with payment due in 12 months. The fair value of the equipment on the date of sale was $87000. The amount of revenue to be recognized on this transaction in 2021 is $87000. $94800. $7800. $87000 sales revenue and $4550 interest revenue.
- Information concerning Blue Corporation's intangible assets is as follows. On January 1, 2025, Blue signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $100,000. Of this amount, $20,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $20,000 each, beginning January 1, 2026. The agreement provides that the down payment is not refundable and no future services are required f the franchisor. The present value at January 1, 2025, of the 4 annual payments discounted at 15% (the implicit rate for a loan of this type) is $57,100. The agreement also provides that 5% of the revenue from the franchise must be paid to the franchisor annually. Blue's revenue from the franchise for 2025 was $870,000. Blue estimates the useful life of the franchise to be 10 years. (Hint: You may want to refer to Chapter 18 to determine the proper accounting treatment for the franchise fee and payments.) Blue incurred…On June 1, 2021, Oriole & Sons sold equipment to James Landscaping Service in exchange for a zero-interest bearing note with a face value of $112800, with payment due in 12 months. The fair value of the equipment on the date of sale was $97200. The amount of revenue to be recognized on this transaction in 2021 is $97200. $112800. $15600. $97200 sales revenue and $9100 interest revenue.On June 1, 2023, Redwood Manufacturin Co. sold equipment to Caramel Company in exchange for a zero-interest bearing note with a face value of $110,000, with paynent due in 12 months. The fair value of the equipment on the date of the sale was $100,000. The amount of revenue to be recognized on this transaction in 2023 is
- On April 1, 2022 Blo Inc. receives a 6-year $60,000 note in exchange for a parcel of land. The cost of the land was $35,000. Neither the market rate nor the fair value of the land can be determined. Notes of similar risk carry a 12% imputed rate of interest. The financial year ends December 31. a. The present value of the note is $Answer b. There was a (gain or loss) Answer on the sale of the land of $AnswerOn November 1, 2022, Nelson Corp. purchased land and a building for a combined cost of $2,000,000. Nelson paid $500,000 in cash and financed the remaining $1,500,000 by issuing a three (3) year, 9% installment note. The note will be paid back in three equal payments beginning on November 1, 2023. The Company has determined that the land and building have fair market values of $440,000 and $1,760,000, respectively. Their combined fair market value is $2,200,000. Part A: Prepare the journal entry Nelson should make to record the acquisition of these two assets. Part B: Calculate the amount of each installment payment on the note and complete the amortization below. Round the installment payment amount to the nearest whole dollar. Date Cash Paid Interest Expense Reduction in CV Carrying Value (CV) 11/1/22 11/1/23 11/1/24 11/1/25 TotalOn January 1, 2025, Oriole Co. sells land for which it had paid $707,400 to Sargent Company, receiving in return Sargent's zero- interest-bearing note for $1,000,000 payable in 5 years. What entry would Oriole make to record the sale, assuming that Oriole frequently sells similar items of land for a cash sales price of $651,000? (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 Jan. 1 Notes Receivable Discount on Notes Receivable Debit Credit