E14-18 Note with unrealistic interest rate; lender; amortization schedule. Amber Mining and Miling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2016. Amber paid for the lathe by issuing a $600,000, 3 year note that specified 4% interest, payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that 12% was a reasonable rate of interest. 1. Prepare the journal entry on January 1, 2016 for Truax Corporation's sale of the lathe. 2. Prepare and amortization schedule for the three-year term of the note. 3. prepare the journal entries to record (a) interest for each of the three years and (b) payment of the note at the maturity for Truax.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “E14-18 Note with unrealistic interest rate; lender; amortization schedule. Amber Mining and Miling, Inc., contracted with Truax Corporation ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Why is it important to learn about the reality of the sports industry before finding an entry-level job. a) You will not receive much training once you enter the industry. b) You will be expected to be an expert on the sports industry.
Answers (2)
Create a formula to determine the required pet deposit for each unit. If the unit has two or more bedrooms and was remodeled after 2006, the deposit is $150; if not, it is $100.
Answers (1)
Keystone Corporation's balance sheet showed the following liability and stockholders' equity amounts: Current Liabilities, $100,000; Bonds Payable, $150,000; Long-Term Lease Obligations, $20,000; Deferred Income Tax Liability, $5,000;
Answers (1)
Frank owes anderson $500. frank is the obligor. anderson, as the obligee, assigns the right to receive the $500 to his daughter jemma. jemma is now:
Answers (1)
When supply increases, what happens to the price?
Answers (1)
New Questions in Business
In which of the following cases will the effect on equilibrium output be indeterminate (i. e., depend on the magnitudes of the shifts in supply and demand) ? a. Demand increases and supply increases b. Demand decreases and supply decreases c.
Answers (1)
One of your fellow investment adviser representatives (iar) at your firm recently came to you and asked for a loan. you couldn't afford to give him the loan, but two days later you overheard him on the phone asking a client for the same loan.
Answers (1)
David likes new balance running shoes. however, when he stopped by the foot locker to buy a new pair of running shoes, he noticed that nike had a new pair of running shoes that cost $350.
Answers (1)
Waterway Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of this machine was $162,900. The company estimated that the machine would have a salvage value of $18,900 at the end of its service life.
Answers (1)
Emarson & Slater Inc. had materials inventory of $13,200 on July 1. The materials inventory on July 31 was $16,500, and the cost of direct materials used in production during the month was $22,000.
Answers (1)