Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 2.00 points exercise 14-18 note with unrealistic i

2.00 points Exercise 14-18 Note with unrealistic interest rate; lender; amortization schedule [LO Amber Mining...

60.1K

Verified Solution

Question

Accounting

image
image
image
image
image
image
2.00 points Exercise 14-18 Note with unrealistic interest rate; lender; amortization schedule [LO Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2016. Amber paid for the lathe by suing a $750,000, three-year note that specified 4% insorest, payable annually on December 31 of each yoar. The cash market price of the lathe was unknown. It was determined by comparison with similar hnsactions that 12% was a reasonable rate of interest (Ey of $1, PyofS1. EVA of $1, PVA of $1. PVAD of $1 and PVAD of $1) (Us appropriate factor(a) from the tables provided) 1a. Complete the below table to prepare the company's journal entry. Interest Price of machinery 1-b. Prepare the joumal entry on January 1, 2016, for Truax Corporation's sale of the lathe. (If no entry is required for a transactionlevent, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record for Truax Corporation's sale of the lathe MacBook Air esc FI F2 F3 FS F6 F7

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