Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on october 1, 2020, sage equipment company sold a

On October 1, 2020, Sage Equipment Company sold a pecan-harvesting machine to Valco Brothers Farm, Inc....

80.2K

Verified Solution

Question

Accounting

On October 1, 2020, Sage Equipment Company sold apecan-harvesting machine to Valco Brothers Farm, Inc. In lieu of acash payment Valco Brothers Farm gave Arden a 2-year, $135,200, 8%note (a realistic rate of interest for a note of this type). Thenote required interest to be paid annually on October 1. Sage’sfinancial statements are prepared on a calendar-year basis.Assuming Valco Brothers Farm fulfills all the terms of the note,prepare the necessary journal entries for Sage Equipment Companyfor the entire term of the note. Assume that reversing entries arenot made on January 1, 2021 and January 1, 2022

Answer & Explanation Solved by verified expert
4.3 Ratings (565 Votes)
Date Particulars Debit Credit October 1 2020 Notes Receivable 135200 Sales Revenue 135200 To record sales made note received December 31 2020    See Answer
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

Advance Math
1.2K views

MatLab code for Bisection and Newton Method to find root for f(k) = p(k)^3+2*(p(k)^2)-10 on interval...

Biology
1.2K views

Which type of microscopy can be used to image intact cells while they are alive...

Basic Math
1.2K views

For the following arithmetic sequence a find the specified term a and b find the...

Basic Math
1.2K views

A Ferris wheel has a diameter of 42 feet. It rotates 3 times per minute....

Basic Math
1.2K views

The polynomial given below has___root(s).3x-8x+4A. two positiveB. two complexC. two negativeD. one positive and one...

Calculus
1.2K views

Let g x h g x X 2 x and h x x 4x 8...

Algebra
1.2K views

0 b If sin x and sec y 5 where 0 x and 0 y...

Accounting
1.2K views

Accounting Cycle Review 11-01 a,b, c1-c3 Morgan Company's balance sheet at December 31,...

Accounting
1.2K views

PR 7-3A Weighted average cost method with perpetual inventory OBJ. 2, 3 The beginning inventory...

Accounting
1.2K views

There are various types of nonprofit organizations recognized by the IRS. Donations to which of...

Accounting
1.2K views

On June 1,2023, a company began construction of a new manufacturing plant. The plant was...

Accounting
1.2K views

For a manufacturing firm, which of the following is a product cost? Select one: A....