keithaaron3803
08.02.2021 •
Business
Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2016. Amber paid for the lathe by issuing a $600,000, three-year note that specified 4% interest, payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that 12% was a reasonable rate of interest.
Required:
1. Prepare the journal entry on January 1, 2016, for Amber Mining and Milling’s purchase of the lathe.
2. Prepare an amortization schedule for the three-year term of the note.
3. Prepare the journal entries to record (a) interest for each of the three years and (b) payment of the note at maturity.
Solved
Show answers
More tips
- F Food and Cooking The Most Delicious and Simple Fish in Batter Recipe...
- D Dating, Love, Relationships How Long Can Love Last?...
- A Auto and Moto Mastering One-Movement Parking: All You Need to Know...
- C Computers and Internet How to Properly Order Clothing from International Online Stores...
- H Health and Medicine Headache: A Comprehensive Guide to Treatment...
- F Family and Home How to Choose the Best Diapers for Your Baby?...
- A Auto and Moto Discovering the Leader: What is the Most Expensive Car in the World?...
- F Food and Cooking How to Quickly Put your Child to Sleep?...
- C Computers and Internet How to Create a Website for Free and Easy?...
- F Family and Home Parquet or laminate, which is better?...
Answers on questions: Business
- B Business Final Assignment B: Your Marketing Plan (30 points) You re ready to make your own marketing plan, using and adding to the work you ve done already in this course. 1. Develop a marketing...
- B Business Say the following 2 events occur at the same time: 1) an increase in the price of milk, an input in the production of cheese; 2) a decrease in the price of bagels, a complement of...
- B Business What are your biggest strengths interview question it can literally be your own facts how you would answer in an interview im just busy with other things....
- B Business In order to maximize profits, a monopolist should produce where marginal revenue is marginal cost. Multiple choice question. equal to Quizlet...
- B Business Beerbo owns equipment that with an original cost of $450,000 and an accumulated depreciation balance to-date of $190,000. In its impairment analysis, the accounting manager determined...
- B Business Bob has capital losses of $4,000 that exceed his capital gains in the current year. Of this amount, $1,200 is a short-term capital loss and $2,800 is a long-term capital loss. The...
- B Business Observant real life story examples...
- B Business Blackshear bank offers a 7% interest rate on loans, but only offers a 2% interest rate on deposits. which of the following is the most likely reason for this spread in interest rates?...
- M Mathematics Logan Chivery owns her own car. Her june monthly interest was $300. The rate is 8 1/2 percent. Logans principal balance at the beginning of June is $42,335.14....
- M Mathematics Tje mean of 12 scores is 8.8 what is the sum of tue 12 scores...
Ответ:
The correct answer is letter "B": rational people think at the margin.
Explanation:
The "rational people think at the margin" principle means that consumers consider the marginal benefits and costs of acquiring a good or service before the purchase is made. Purchases typically take place when the marginal benefit is higher than the marginal cost.