Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. south company, a public company, sells large const

South Company, a public company, sells large construction equipment. On 1 January 20X5, the company...

90.2K

Verified Solution

Question

Accounting

South Company, a public company, sells large construction equipment. On 1 January 20X5, the company sold North Company a machine at a quoted price of $152,000. South collected $56,000 cash and received a two-year note payable for the balance. Required: 1. Give Souths required entries for the two years, assuming an interest-bearing note, face value $96,000 (8% interest, simple interest, payable every 31 December and 8% market rate). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 2. Assume that the market interest rate is still 8%. Give Souths required entries for the two years, assuming a 2% interest-bearing note, face value $96,000. Prepare the entries based on the gross basis. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 3. Compare the interest revenue and sales revenue under requirements 1 and 2

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

Accounting
1.2K views

Yale Company manufactures hair brushes that sell at wholesalefor $3 per unit. The company...

Biology
1.2K views

Put these steps in neuromuscular junction synaptic transmission and excitation-contraction coupling in chronological order. (Type the letters...

General Management
1.2K views

The Coffee Retail Industry in Giomo The coffee retail industry in Giomo was dominated by large coffee...

Accounting
1.2K views

A citizen group raised funds to establish an endowment for the Eastville City Library. Under the...

Physics
1.2K views

Two identical charges are placed at two corners of an equilateral triangle The potential energy...

Physics
1.2K views

The spectrum of a black body at two temperature 27 C and 327 C is...

Algebra
1.2K views

21 Find a basis for the subspace of R consisting of all vectors 2 such...

Accounting
1.2K views

After several years of profitable operations, Javell, the sole shareholder of JBD Inc., a C...

Accounting
1.2K views

1 Record the purchase of storage shed components for $87,000. 2 Record the payment...

Accounting
1.2K views

32.On 1 November Yasmine Company Pty Ltd issued 100 000 shares for $5 each. The...

Accounting
1.2K views

Suppose a customer rents a vehicle for four months from Rent-A-Car on October 1, paying...

Accounting
1.2K views

An analyst has timed a metal-cutting operation for 50 cycles. The average time per cycle...