Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. desrosier company acquires a machine on 1 january

DesRosier Company acquires a machine on 1 January 20x6, with a non-interest-bearing note that requires...

70.2K

Verified Solution

Question

Accounting

image
DesRosier Company acquires a machine on 1 January 20x6, with a non-interest-bearing note that requires $16,000 to be paid on 31 December 20x6 and again on 31 December 2 X7. The note has no explicit interest, but the prevaling interest rate is 4% on abilities o s milar risk and duration. The cash equivalent cost of the machine is unknown. (PV of S1. PVA of S1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: Provide thejournal entry to record the machine on 1 January 20X6. Use the net method to record the note payable. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time value factor to 5 decimal places and final answer to the nearest whole dollar amount.) View transaction list Journal entry worksheet Record the purchase of equipment. Note: Enter debits before credits Date General Journal DebitCredit 1 Jan 20X6

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