Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on july 1,2025, waterway inc. made two sales. it

On July 1,2025, Waterway Inc. made two sales. It sold land having a...

50.1K

Verified Solution

Question

Accounting

On July 1,2025, Waterway Inc. made two sales.
It sold land having a fair value of $913,050 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,436,698. The land is carried on Waterway's books at a cost of $592,800.
It rendered services in exchange for a 3%,8-year promissory note having a face value of $407,700(interest payable annually).
Waterway 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 Waterway 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 0 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.)
image

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

For each of the following difference equations (i) y[n + 1] + 1.5y[n] = x[n] (ii) y[n...

Electrical Engineering
Q

¿ 3 IFRS Disandvantages ?

Accounting
Q

Consider the spinner shown C11 Part A Find P 8 or pink Enter the correct...

Statistics
Q

3 3 3n n n 5 2 n A n n 3 B n 2...

Algebra
Q

Sarasota Limited purchased a new computer system for $155,000. It is estimated that the computer...

Accounting
Q

Required information SB Exercise E8-5 to E8-10 (The following information applies to the questions displayed...

Accounting
Q

Warren, it may not be as bad as it seems, Ron replied. Lets put our...

Accounting
Q

Required: Prepare a depreciation schedule for four years using the straight-line method. (Do not...

Accounting
Q

question (4) Q(4) 1 2 ...

Accounting
Q

- 76 View Policies Current Attempt in Progress . . On October 31, 2020, Montgomery...

Accounting
Q

QUESTION 4 What is the business-can't-handle-it" argument? Discuss the two reasons in support of this...

Accounting
Q

*how do I record the journal entry and calculate and record the gain and loss...

Accounting