Class8-solution - EXERCISE 21-6 (a) $35,013 + (4.7122* x...

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EXERCISE 21-6 (a) $35,013 + (4.7122* x 35,013) = $200,001 *Present value of an annuity of 1 for 7 periods at 11%. (b) 1/1/07 Lease Receivable. ........................ 200,001 Cost of Goods Sold. .................... 160,000 Sales. ...................................... 200,001 Inventory. ............................... 160,000 1/1/07 Cash. ............................................. 35,013 Lease Receivable. ................. 35,013 12/31/07 Interest Receivable. ..................... 18,149 Interest Revenue. .................. 18,149 [($200,001 – $35,013) x .11] 1
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EXERCISE 21-12 (a) Entries for Doug Nelson are as follows: 1/1/07 Building. ................................... 4,500,000 Cash. ..................................... 4,500,000 12/31/07 Cash. ......................................... 275,000 Rental Revenue. ................ 275,000 Depreciation Expense. ............ 90,000 Accumulated Depreciation— Building. ........................ 90,000 ($4,500,000 ÷ 50) Property Tax Expense. ............ 85,000
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This note was uploaded on 12/04/2009 for the course MGMT 351 taught by Professor Staff during the Spring '08 term at Purdue University-West Lafayette.

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Class8-solution - EXERCISE 21-6 (a) $35,013 + (4.7122* x...

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