On July 31, 2021, XYZ Corporation (an equipment manufacturer) sold equipment that cost $150,000 to ABC Company (a constr

[answerhappygod]

On July 31 2021 Xyz Corporation An Equipment Manufacturer Sold Equipment That Cost 150 000 To Abc Company A Constr 1 (114.81 KiB) Viewed 14 times

On July 31 2021 Xyz Corporation An Equipment Manufacturer Sold Equipment That Cost 150 000 To Abc Company A Constr 2 (91.81 KiB) Viewed 14 times

On July 31, 2021, XYZ Corporation (an equipment manufacturer) sold equipment that cost $150,000 to ABC Company (a construction company). The agreement stipulated that ABC would make a down payment of $100,000 and five payments of $50,000 (including interest) annually on July 31. The first note payment is to be made on July 31, 2022. Assuming that a prevailing interest rate of 6% applies to this contract: Present value of an Present Future value of an ordinary annuity 5.63709 Future Value of 1 1.33823 Present value of an ordinary annuity 4.21236 annuity due i value of 1 0.74726 5 4.46511 6% 1. Prepare the journal entry for XYZ to record sale of the equipment on 7/31/21. (9 pts) Account Title Debit Credit 2. Prepare the journal entry(s) for XYZ for year ended 12/31/22, if any, associated with this sale of the equipment (3 pts) Account Title Debit Credit
2. Prepare the journal entry(s) for XYZ for year ended 12/31/22, if any, associated with this sale of the equipment (3 pts) Account Title Debit Credit 3. Prepare the entry for the receipt of payment on 7/31/2023 for XYZ if the company uses (makes) reversing entries. (3 pts) Account Title Debit Credit 4. Prepare the journal entry for ABC to record the purchase of the equipment on 7/31/21. (4pts) Account Title Debit Credit
On August 31, 2021. Company ABC purchased a new machine from XYZ. The agreement stipulated that ABC make four payments of $75,000 (including interest) annually August 31. The first note payment is to be made on August 31, 2021. Assume that a market interest rate of 5% applies to this contract: Present value of an Future value of an ordinary annuity Future Value of 1 Present value of 1 Present value of an ordinary annuity 3.54595 annuity due n i 1.21551 0.82270 431013 3.72325 59 1. Record Company ABC's purchase of the machine on August 31, 2021? (6pts) Account Title Debit Credit 2. Prepare the journal entry(s) for Company ABC for year ended 12/31/23, if any, associated with the purchase of this equipment. (3 pts)
2. Prepare the journal entry(s) for Company ABC for year ended 12/31/23, if any, associated with the purchase of this equipment. (3 pts) Account Title Debit Credit 3. Record Company ABC's payment on the note for August 31, 2023 if the company does not make reversing entries? (3pts) Account Title Debit Credit 4. What is the total interest expense ABC will incur over the life of this note? (2pts) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).