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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On January 1, 2020, Concord Company makes the two following acquisitions. 1. Purchases land having a fair value of $370,000 by issuing a 4-year, zero-interest-bearing promissory note in the face amount of $561,686. 2. Purchases equipment by issuing a 7%, 8-year promissory note having a maturity value of $550,000 (interest payable annually). The company has to pay 11% interest for funds from its bank. (a) Record the two journal entries that should be recorded by Concord Company for the two purchases on January 1, 2020. (b) Record the interest at the end of th
January 1, 2020, Teal Company makes the two following acquisitions. 1. Purchases land having a fair value of $270,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $475,832. 2.Purchases equipment by issuing a 7%, 8-year promissory note having a maturity value of $360,000 (interest payable annually). The company has to pay 12% interest for funds from its bank. (a) Record the two journal entries that should be recorded by Teal Company for the two purchases on January 1, 2020. (b) Record the interest at the end of the first year on both notes using the effective-interest method.
On January 1, 2020, Pronghorn Company makes the two following acquisitions. 1. Purchases land having a fair market value of $220,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $323,252. 2. Purchases equipment by issuing a 5%, 8-year promissory note having a maturity value of $350,000 (interest payable annually).
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