Prob 14-3

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Unformatted text preview: ions that 12% was a reas onable rate of interes t. (FV of $1, PV of $1, FV A of $1, PV A of $1, FV A D of $1 and PV A D of $1) (Use a ppropria te fa ctor(s) from the ta ble s provide d.) Re quire d: 1.1 Complete the below table to prepare the c ompany 's journal entry . ezto.mhecloud.mcg r aw- hill.com/hm_accounting .tpx?todo= pr intviewSing le 2/4 2/25/14 Assig nment Pr int View Ta ble va lue s a re ba se d on: n= 3 i= 12.0% Ca sh Flow Am ount Interes t $ Princ ipal $ Pre se nt Va lue 24,000 $ 600,000 427,068 $ Pric e of mac hinery 57,644 484,712 1.2 Prepare the journal entry on January 1, 2013, for Amber Mining and Milling’s purc has e of the lathe. (If no journa l e ntry is re quire d for a e ve nt, se le ct "No journa l e ntry re quire d" in the first a ccount fie ld.) Eve nt 1 Ge ne ra l Journa l De bit Mac hinery 484,712+/ -1 3 Dis c ount on notes pay able Cre dit 115,288+/ -1 3 Notes pay able 600,000 2. Prepare an amortiz ation s c hedule for the three-y ear term of the note. 3. Prepare the journal entries to rec ord (a) interes t for eac h of the three y ears and (b) pay ment of the note at maturity . (If no journa l e ntry is re quire d for a e ve nt, se le ct "No journa l e ntry re quire d" in the first a ccount fie ld.) Explanation: 1. ezto.mhecloud.mcg r aw- hill.com/hm_accounting .tpx?todo= pr intviewSing le 3/4 2/25/14 Assig nment Pr int View Interes t Princ ipal $24,000¥ $600,000 × × 2.40183 * 0.71178 ** = = $ 57,644 $ 427,068 Pres ent value (pric e) of t...
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This homework help was uploaded on 03/22/2014 for the course ACC 3000 taught by Professor He during the Fall '09 term at CUNY Baruch.

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