Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please show all your work for the journal entries

Please show all your work for the journal entries and please show all your calculations...

80.2K

Verified Solution

Question

Accounting

imagePlease show all your work for the journal entries and please show all your calculations for the time value of money.

On Jan. 1,2020, Bobcat Const. purchased equipment from Gallatin Equipment. Bobcat gave a 0% interest $140,493 promissory note payable to Gallatin with the following terms. Scenario 3: Loan Terms: The note payable terms are 0% interest with one easy payment of $140,493 due on 12/31/2022, The current market interest rate for similar loans is 12% annual. The loan contract requires no annual interest payments. Instructions: Show your calculations! 1) Dete mine the fair market value of the note-> 2) Record Bobcats journal entries for 2020. Single Payment Note: Required Cash Payment Reported Interest Expense 12% Discount Amortization Unamortized NP (Loan) Discount NP (Loan) Carrying Value NP (Loan) Maturity/Face or Par Value Date 01/01/20 100,000 140,493 12/31/20 12,000 12,000 28,493 112,000 140,493 12/31/21 13,440 13,440 15,053 125,440 140,493 12/31/22 15,053 15,053 Final Payment Totals 140,493 140,493 140,493 (140,493) 0 140,493 (140,493) 9 40.493 140.493) 10 Accounting Journal Entries Debit Credit 01/01/20 12/31/20

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