Discounted value of the note receivable

Assignment Help Accounting Basics
Reference no: EM13155240

XYZ's Software Development Division (SDD) has developed several architectural design software packages. One software package that they have developed is being sold to an English Company for $310,000 or 385,000 pounds. The cost of developing the software was $255,000. As payment, XYZ has accepted a note receivable that is due in 5 years.

SDD has also developed a second software package. They incurred development costs of $500,000. They are trading this software package in exchange for a small office building. The fair market value of this building is $675,000.

In an Excel spreadsheet, make the appropriate accounting entry on XYZ's books for each software sale. Include 1-3 paragraphs discussing the accounting issues involved for each sale. Include a 450-1255 word discussion of the accounting issues involved for each sale.

Use $285,000 as the discounted value of the note receivable.

Reference no: EM13155240

Questions Cloud

Informative paper on punk rock music : I've decided to write an informative paper on Punk Rock music. My reasoning behind the choice is because I wanted to further my knowledge on the genre.
How many moles of bromine will react : How many moles of bromine will react with 0.0500 mole of C2H2 in the reaction  C2H2 + 2 Br2 -> C2H2Br4?
Short-term instruments yielding : The company also makes its disbursements from remote disbursement centers so checks written by City Farm take longer to clear the bank. Collection time has been reduced by two days and disbursement time increased by one day because of these polici..
How an aminotransferase chemical mechanism works : Without drawing detailed structures of intermediates and movement of electrons, describe how an aminotransferase chemical mechanism works.. That is, the nature of the second substrate and second product.
Discounted value of the note receivable : SDD has also developed a second software package. They incurred development costs of $500,000. They are trading this software package in exchange for a small office building. The fair market value of this building is $675,000. Use $285,000 as the ..
Filing and legal fees related to the stock issue : The firm estimates it can sell new shares of stock for $32.50 a share. it also estimates it will cost an additional $340,000 for filing and legal fees related to the stock issue. The underwriters have agreed to a 7.5 percent spread.
Health care research class : I am taking health care research class. I am having difficulty knowing where to find the framework in the literature review. Also, when doing a critique of a literature review, how do I know if any studies are critiqued by the researcher?
Describe the three additional adaptations to life on land : Describe the environmental conditions that favored the evolution of gymnosperms. Describe the three additional adaptations to life on land that first appeared in gymnosperms.
Calculate the energy : A calorimeter that contains 2500 g of surrounding water is used to measure the heat associated with the reaction of 520 g of a reactant. Calculate the energy, in joules per kilogram of reactant, associated with the reaction

Reviews

Write a Review

Accounting Basics Questions & Answers

  Introductory section of cafr

The introductory section of a CAFR typically includes all of the following except

  Preparing journal entries to update depreciation

Carlton Company sells office equipment on September 30, 2010, for $21,000 cash. The office equipment originally cost $72,000 and as of January 1, 2010, had accumulated depreciation of $42,000. Depreciation for the first 9 months of 2010 is $6,000...

  Gain recognize on the exchange

Fred and Wilma exchanged equipment in a qualifying like-kind exchange. Fred gives up equipment with an adjusted basis of $14,000 (FMV = $15,000) in exchange for Wilma's equipment with a fair market value of $12,000 plus $3,000 cash. How much gain ..

  Nonfinancial data in analytical procedures

The major concern when using nonfinancial data in analytical procedures is the:

  Relative advantages of partnership

What are the relative advantages of partnership versus limited partnership as a form of doing business? What legal principles are most likely to bite partnerships?

  Estimated costs and activities for the current year

The company has three activity cost pools and applies overhead using predetermined overhead rates for each activity cost pool. Estimated costs and activities for the current year are presented below for the three activity cost pools:

  Purchase price in consolidated financial-statements

On January 1, 2009, Riley Corp. acquired some of the outstanding bonds of one of its subsidiaries. The bonds had a carrying value of $421,620 and Riley paid $401,937 for them. How should you account for the difference between the carrying value an..

  Obligations and commitments of issuing company

A legal document which summarizes the rights and privileges of bondholders as well as the obligations and commitments of the issuing company is called

  Which statements is accurate with respect to the federal

Under Carl's will, Carl created a testamentary trust to be funded with $700,000 worth of assets. All of the income of the trust is payable to Carl's child, Jane, for her life, and thereafter, the remaining assets of the trust will pass to The Publ..

  Exchange rate or spot rate under temporal method

What is the basis for deciding whether to use the spot rate or some other exchange rate when converting a foreign subsidiary's trial balance accounts into U.S. dollars under the temporal method?

  Separate component of stockholders equity

At December 31,2010 the fair value of the Carlin, Inc. bonds was $318,000. What should Richman Co. report as other comprehensive income and as a separate component of stockholders' equity?

  Decisions concerning the costs

Fairmont Inc. uses an accounting system that charges costs to the manager who has been delegated the authority to make decisions concerning the costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd