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ACCOUNTING PERIOD DETAILS: Ace's fiscal year ends on December 31st every year. Ace prepares accrual...

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Accounting

image ACCOUNTING PERIOD DETAILS: Ace's fiscal year ends on December 31st every year. Ace prepares accrual adjusting entries semi-annually, on June 30th and Dec. 31st each ye Ace applies US GAAP for all of its debt instruments and does not use the fair value option CONTRACT DETAILS FOR DEBT 4: On 1/1/16, Ace decided to purchase equipment with a fair market value of $350,000. Ace financed this purchase with the vendor by issuing a loan payable. The loan payable has a face value of $492,243 because that's the amount that Ace is required to pay the vendor on the maturity date of December 31, 2019. No other payments are required on this loan. Requirement 1: Fill in the boxes below for these bonds. Annual annuity payment amount required = Number of periods (n)= (NOTE: Even though Ace prepares semi-annual AJEs, this loan requires annual compounding.) Market interest rate per period = Original carrying value of this NON-CASH LOAN = $350,000.00 Requirement 2: Prepare the entries that Ace would have prepared for this loan on the dates below. If no entry is required, state so. You must ignore depreciation AJEs for the equipment purchased by this loan. 1/1/2016Date Account Debit Credit 6/30/2016

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