Business, 24.04.2020 17:29, puppylove899

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, 2018, Amber paid for the lathe by issuing a $650,000, 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 9% was a reasonable rate of interest. (Fy of $1 pV of $1, FIA of $1. PVA of S. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) ExAD of Si) Uish sinliar trnccmbr0aion
Required:
1-a. Complete the table below to determine the price of the equipment.
1-b. Prepare the journal entry on January 1, 2018, 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

Answers: 2

Show answers

Other questions on the subject: Business

Business, 22.06.2019 06:30, henriquetucker

Double corporation acquired all of the common stock of simple company for

Answers: 2

continue

Business, 22.06.2019 14:40, smithnakayla19

Increases in output and increases in the inflation rate have been linked to

Answers: 2

continue

Business, 22.06.2019 14:50, kianofou853

Ann chovies, owner of the perfect pasta pizza parlor, uses 20 pounds of pepperoni each day in preparing pizzas. order costs for pepperoni are $10.00 per order, and carrying costs are 4 cents per pound per day. lead time for each order is three days, and the pepperoni itself costs $3.00 per pound. if she were to order 80 pounds of pepperoni at a time, what would be the average inventory level?

Answers: 3

continue

Business, 23.06.2019 00:10, gisset9

Mno corporation uses a job-order costing system with a predetermined overhead rate based on direct labor-hours. the company based its predetermined overhead rate for the current year on the following data: total estimated direct labor-hours 50,000 total estimated fixed manufacturing overhead cost $ 285,000 estimated variable manufacturing overhead per direct labor-hour $ 3.80 recently, job p123 was completed with the following characteristics: total actual direct labor-hours 20 direct materials $ 710 direct labor cost $ 500 the amount of overhead applied to job p123 is closest to:

Answers: 2

continue

Do you know the correct answer?

Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made...