Tipton Company purchases land for $560,000 with a note payable for the same amount. The company also pays cash of $2,100 for a survey fee and $3,100 for broker commissions. The journal entry would be: O Land 565,200 Notes Payable Cash O Land OO Notes Payable O Land Cash O Land Broker & Survey Expense Notes Payable 565,200 560,000 560,000 5,200 560,000 5,200 565,200 560,000 565,200

Tipton Company purchases land for $560,000 with a note payable for the same amount. The company also pays cash of $2,100 for a survey fee and $3,100 for broker commissions. The journal entry would be: O Land 565,200 Notes Payable Cash O Land OO Notes Payable O Land Cash O Land Broker & Survey Expense Notes Payable 565,200 560,000 560,000 5,200 560,000 5,200 565,200 560,000 565,200

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 6AP

See similar textbooks

Similar questions

Vigan Corporation included the following in its notes receivable as at December 31, 2021: Note receivable from sale of land P 880,000 Note receivable from consultation 1,200,000 Note receivable from sale of equipment 1,600,000 In connection with your audit, you were able to gather the following transactions during 2021 and other information pertaining to the company’s notes receivable: On January 1, 2021, Vigan Corporation sold a tract of land. The land was purchased 10 years ago was carried on Vigan’s Corporation’s books at a value of P 500,000. Vigan received a noninterest bearing note for P 880,000 . The note is due on December 31, 2022. There is no readily available market value for the land but the current market rate of interest for comparable notes is 10%. On January 1, 2021, Vigan Corporation finished consultation services and accepted in exchange of a promissory note with a face value of P 1,200,000 , a due date of…
Remix Company included the following in its notes receivable as of December 31, 2021: Notes receivable from sale of land 880,000 Notes receivable from consultation 1,200,000 Notes receivable from sale of equipment 1,600,000 The following transaction during 2021 and other information relate to the company’s note receivable: On January 1, 2021, Remix Company sold a tract of land to Future Company. The land, purchased 10 years ago, was carried on Remix’s books at P500,000. Remix received a noninterest-bearing note for P880,000 from Future. The note is due on December 31, 2023. There was no established exchange price for the land. The prevailing interest rate for this note on January 1, 2021 was 10%. On January 1, 2021, Remix Company received a 5%, P1,200,000 promissory note in exchange for the consultation services rendered. The note will mature on December 31, 2024, with interest receivable every December The fair value of the…
Company A purchases land on January 1, 2021 for $ 40,000 with a note payable. Other cost includes $ 2500 in delinquent property taxes, Ş in transfer taxes and a $ 1500 survey fee. General Journal Page Date Account Titles and Explanation Debit Credit
31. Vigan Corporation included the following in its notes receivable as at December 31, 2021: Note receivable from sale of land P 880,000 1,200,000 Note receivable from consultation Note receivable from sale of equipment 1,600,000 In connection with your audit, you were able to gather the following transactions during 2021 and other information pertaining to the company's notes receivable: a. On January 1, 2021, Vigan Corporation sold a tract of land. The land was purchased 10 years ago was carried on Vigan's Corporation's books at a value of P 500,000. Vigan received a noninterest bearing note for P 880,000. The note is due on December 31, 2022. There is no readily available market value for the land but the current market rate of interest for comparable notes is 10%. b. On January 1, 2021, Vigan Corporation finished consultation services and accepted in exchange of a promissory note with a face value of P 1,200,000, a due date of December 31, 2023 and a stated rate of 5% with…
WATASHIWA Corp. included the following in its notes receivable as of December 31, 2015: Note receivable from sale of land Note receivable from consultation P2,640,000 3,600,000 4,800,000 Note receivable from sale of equipment The following transactions during 2015 and other information relate to the company's notes receceivable: a) On January 1, 2015, WATASHIWA Corp. sold a tract of land to Twice Company. The land, purchased 10 years ago, was carried on WATASHIWA's books at P1,500,000. WATASHIWA received a noninterest-bearing note for P2,640,000 from Twice. The note is due on December 31, 2016. There was no established exchange price for the land. The prevailing interest rate for this note on January 1, 2015 was 10%. b) On January 1, 2015, WATASHIWA Corp. received a 5%, P3,600,000 promissory note in exchange for the consultation services rendered. The note will mature on December 31, 2017, with interest receivable every December 31. The fair value of the services rendered is not…
The purchases journal is used to record Credit sales Cash sales Cash receipts O Cash purchases O Credit purchases
Elm City issued a purchase order for supplies with an estimated cost of $5,000. When the supplies were received, the accompanying invoice indicated an actual price of $4,950. What amount should Elm debit (credit) to the reserve for encumbrances after the supplies and invoice were received?a. ($50)b. $50c. $4,950d. $5,000
Required information [The following information applies to the questions displayed below.] On August 1, 2022, Colombo Company's treasurer signed a note promising to pay $122,400 on December 31, 2022. The proceeds of the note were $116,400. c. 1. Record the journal entry to show the effects of signing the note and the receipt of the cash proceeds on August 1, 2022. 2. Record the journal entry to show the effects of recording interest expense for the month of September. 3. Record the journal entry to show the effects of repaying the note on December 31, 2022. Complete this question by entering your answers in the tabs below. Required C1 Required C2 Required C3 Record the journal entry to show the effects of signing the note and the receipt of the cash proceeds on August 1, 2022. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1
A select list of transactions of Namely Company are listed below: Date Transaction Description Issued a $40,000 note to Lake Company in exchange for a machine. Lake discounted the note at 9%. The note is due on October 1, 2022. 3/1/2022 9/1/2022 Purchased merchandise on account from Aspen Co., $12,000. 10/1/2022 Paid Lake Company the amount due on the note of March 1. 11/1/2022 Issued a 3-month, 12% note for $12,000 to Aspen Co. on account. 12/31/2022 Accrued interest on the Aspen Co. note. 2/1/2023 Paid Aspen Co. the amount owed on the note of November 1. Required: Prepare journal entries (journal entry descriptions NOT required) for Namely Company to record the transactions above. If necessary, round all figures to whole dollars. Namely's fiscal year end is December 31st.
On January 1, Year 1, a company purchased land costing $800,000. Instead of paying cash at the time of purchase, the company plans to make four installment payments of $215,221.64 on June 30 and December 31 in Year 1 and Year 2. The payments include interest at a rate of 6%. Required: 1. Record the purchase of land when the note is issued. 2. Record the first installment payment on June 30, Year 1, and the second installment payment on December 31, Year 1. 3. Calculate the balance of Notes Payable and Interest Expense on December 31, Year 1.
How much should be recorded as the purchase price of theindividual PPE items: 1. Equipment has an invoice price of P1,000,000, and a creditterm of 2/30, n/60. Cash discount was not taken. 2. Paid cash of P200,000 and issued a note for the purchase ofa machinery. The note has a face value of P1,000,000 dueafter three years and an effective interest rate of 7%. 3. Five units of equipment was purchased through theissuance of 1,000 pieces of P1,000 par‐value shares. Eachequipment has a fair value of P300,000 while a share isvalued at P1400. 4. Issued bonds with face value of P5,000,000 and fair value ofP5,100,000 to purchase equipment with a fair value ofP4,900,000. 5. The old equipment has an original cost of P1,500,000,accumulated depreciation of P600,000, and fair value ofP1,000,000. The new equipment obtained throughexchange has a fair value of P1,200,000. The balance was settled with cash. The exchange will not affect the future cashflows of the entity.
Scarlet Company received an invoice for $67,000.00 that had payment terms of 2/5 n/30. If it made a partial payment of $16,500.00 during the discount period, calculate the balance of the invoice. Round to the nearest cent