Reference no: EM131054105

Accounting 321 Cash Flow, Receivables Quit: 20 Points 

1 Paid in capital 25,000.00
2. Purchase 200 units @ 50 on account
3. Sell 140 units @ 100 on account. Collect 35%
4. Puchase 45,000.00  of equipment in exchange for 5-year note @ 0.075 depreciate SL 5 years
5. Sell equipment for 48,000.00 on May 5th, day 125
6. Purchase equipment on July 25, day  206 for 25.000.00
in exchange for a 3-year note @ 0.055 depreciate IL 5-years.
7. Record service revenue of 7,500 on 7- month note @ 4.1953627%
Discount Feb 28 @ 0.05 use finance convention. With recourse. note not honored, contingently liable
8. Make pmt on Note 1
9. Make payment on Note 2
10. Record Depr on Equipment 2 
11. Pay dividend of  2500
12. Assign Receivables sufficient to settle 5.000 Accounts Payable on December 1.

Collect 3,000 on account at year end

Discount rate 0.15 Fee 0.07 Interest rate 0.04