On 1st april 20x7 miller oil company purchased a pumping

Assignment Help Financial Accounting
Reference no: EM13370904

On 1st April, 20X7, Miller Oil Company purchased a pumping truck. The sole consideration was a $100,000 note due in one year. Interest of $12,000 was added the face amount of the note. If Miller had purchased the truck for cash, the purchase price would have been only $88,000.
(a) Create the appropriate journal entry to record the purchase on 1st April, 20X7.

(b) Create the appropriate journal entry to record the year-end discount amortization on December 31, 20X7.

(c) Prepare the suitable journal entry to record the payment of the note on 31st March, 20X8.

(d) Evaluate what was actual rate of interest on this loan?

Reference no: EM13370904

Previous Q& A

  The executor of a deceased clients estate comes to you with

the executor of a deceased clients estate comes to you with a letter from the irs showing that they are auditing a

  Death and taxes are two certainties that we can plan for in

death and taxes are two certainties that we can plan for in life. the irs is still able to tax us in death using estate

  During 2013 jeff smallwood worked for two different

during 2013 jeff smallwood worked for two different employers. until may he worked for rowland constructions company in

  1 employees are paid bi-monthly on the 1st day of the month

1 employees are paid bi-monthly on the 1st day of the month for work performed during the last half of the last month

  Investment after taxes14 is the firms cost of capital tax

investment after taxes14 is the firms cost of capital. tax rate is 40 percent and the firm uses straight line

  It has been evaluated by the irs that 200000 of the ceos

it has been evaluated by the irs that 200000 of the ceos salary is a constructive dividend. suppose the corporation has

  Show the role of the managerial accountant in todays

show the role of the managerial accountant in todays business environment. how has role changed and evolved over

  If company is optimistic about its china venture and

if company is optimistic about its china venture and anticipates continued investment and growth are restrictions on

  On 1st january 2010 jacob issues 800000 of 9 percent

on 1st january 2010 jacob issues 800000 of 9 percent 13-year bonds at a price of 96frac12. six years later on january 1

  Barrington bears bb has developed the subsequent sales

barrington bears bb has developed the subsequent sales forecasts for the next few months january 500 february 600 march

Reviews

Write a Review

 

Similar Q& A

  Carryforward and carryback of nol no valuation account no

carryforward and carryback of nol no valuation account no temporary differencesthe pretax financial incomeor loss

  Evaluate the value of units completed and transferred out

Evaluate the value of units completed and transferred out, ending work-in-process inventory, and the loss due to abnormal spoilage for the Assembly department.

  Find what would be change in miller''s operating profits

Suppose that Miller is operating at full capacity. If Miller were to accept Brisbois's offer, find what would be the change in Miller's operating profits?

  Computation of free cash flow from given datagiven the

computation of free cash flow from given data.given the following financial statements for acme corporation what is the

  Explain how many units of each product should jeepster make

Explain how many units of each product should Jeepster make in order to maximize profits?

  Illustrate what is great lake effective tax rate

Net nonoperating expense before tax of $53,828 thousand. Great Lakes statutory tax rate for 2010 is 35%. Illustrate what is Great Lake’s effective tax rate?

  Calumet''s phone costs for individual customers

Evaluation of cost of usage  per customer using the data given - Calumet's phone costs (rounded) for Individual Customers

  Journal entries for notes payable interest expense etcon

journal entries for notes payable interest expense etc.on nov. 1 aspen sports borrowed 75000 from chase bank on a 12

  Discuss the advantages and disadvantages

Discuss the advantages and disadvantages of having diverse accounting standards that are the product of each country's national environment.

  How many units of each product-marshmallow bunnies

Compute the break-even sales (units) for the overall product, E. ? How many units of each product, marshmallow bunnies and jellybeans, would be sold at the break-even point?

  What is the net present value of the project

Ables Enterprises has an investment proposed by a division manager. Here are the estimates from the proposal: 1. The required investment for the project is $1,500. 2. The investment will result in two years of cash inflows of $1,000 each, assumed a..

  Calculate the number and total cost of the units available

The company uses a periodic inventory system. On December 31, 2011, a physical count reveals that 35,000 units of its product remain in inventory. Calculate the number and total cost of the units available for sale in year 2011

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