Prepare journal entry to record the transaction of december

Assignment Help Accounting Basics
Reference no: EM132171010

Question - On December 31, 2017, Pharoah Co. sold equipment to Shamrock, Inc. Pharoah Co. agreed to accept a $380,000 zero-interest-bearing note due December 31, 2019, as payment in full. Shamrock, Inc. incorporated in 2017 and had very little credit history at the time of the transaction with Pharoah. Therefore, at that time, Shamrock typically borrowed funds at a rate of 11%. Pharoah has a long and positive credit history. Therefore, Pharoah has various lines of credit at 6%.

Prepare the journal entry to record the transaction of December 31, 2017, for Pharoah Co.

Assuming Pharoah Co.'s fiscal year-end is December 31, prepare the journal entry for December 31, 2018.

Assuming Pharoah Co.'s fiscal-year end is December 31, prepare the journal entries for December 31, 2019.

Reference no: EM132171010

Questions Cloud

Expatriates before they go to the foreign location : Does your company employ expatriates in any overseas operations it might have?
What amount of cash did abardeen pay for interest : Abardeen Corporation borrowed $120,000 from the bank on October 1, 2018. What amount of cash did Abardeen pay for interest in 2018
Discuss the pros and cons of that style and how it affects : Identify a leadership style (democratic, autocratic, dictatorship, etc.) and discuss the pros and cons of that style and how it affects, impacts strategic
Affected by four elements of the marketing environment : All business activities are affected by four elements of the marketing environment. Explain those elements.
Prepare journal entry to record the transaction of december : Prepare the journal entry to record the transaction of December 31, 2017, for Pharoah Co. Prepare the journal entry for December 31, 2018
Explain why a company must define its business : Explain why a company must define its business, and how managers achieve this through choices about which customer groups, customer needs
How do you attack category leader : How do you attack a category leader? The best way to challenge a leader is to attack its strengths.
Why is developing an organizational culture crucial : Why is developing an organizational culture crucial to developing a brand?
Create a manual handling operational procedure : TLIL5020 : Create a Manual Handling Operational Procedure for Stock movement for 10 - 20Kgs, and Less than 10 Kg.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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