E connect e Question 4 for s 4· 1 0.00 points On January 1, 2016, Byner Company
ID: 2578060 • Letter: E
Question
E connect e Question 4 for s 4· 1 0.00 points On January 1, 2016, Byner Company purchased a used tractor Byner paid $7,000 don and signed a noneneres teanng note reqreg S4000010 be pad on December 312018 The fair value of the tractor ts not determinable An interest rate of 10% property reflects the time value of money for this type of loan agreement. The company's fiscal year end is December 31. (FV of S1.PV of $1. FVA.ol SI PVA o S1 EVAD of S1and PVAD of S1) (Use appropriate factor(s) from the tables provided. ) 1 Prepare the jounal entry to recoed the acqusition of the tractor (If no entry is required for a transactionlevent, select "No journal entry required" in the first account field.) Journal entry worksheet Record the acquisition of the tractor TOSHIBA 2 3 4 tab shiftExplanation / Answer
cash down payment
7000
7000
notes payables to be paid after one year
40000
present value of notes payable at jan 1 2016
future value/(1+r)^n
40000/(1.1)^3
30052.59
future value
40000
rate
10%
time period
3 years
date
explanation
debit
credit
1-Jan
tractor
37052.59
cash
7000
notes payable
30052.59
cash down payment
7000
7000
notes payables to be paid after one year
40000
present value of notes payable at jan 1 2016
future value/(1+r)^n
40000/(1.1)^3
30052.59
future value
40000
rate
10%
time period
3 years
date
explanation
debit
credit
1-Jan
tractor
37052.59
cash
7000
notes payable
30052.59
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