1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
zaharov [31]
3 years ago
6

At January 1, 2018, Transit Developments owed First City Bank Group $600,000, under an 11% note with three years remaining to ma

turity. Due to financial difficulties, Transit was unable to pay the previous year’s interest. First City Bank Group agreed to settle Transit’s debt in exchange for land having a fair value of $450,000. Transit purchased the land in 2014 for $325,000. Required: Prepare the journal entry(s) to record the restructuring of the debt by Transit Developments. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Business
1 answer:
VashaNatasha [74]3 years ago
4 0

Answer:

interest payable   66,000

note payable      384,000

       Land                            325,000

       Gain on disposal         125,000

Explanation:

600,000 x 11% = 66,000 interest payable

the land is being used to settle the note along with the accrued interest at the time:

the accounting  of Transit developments record the land at cost: 325,000

as the market valuye is 450,000 so a gain for 125,000 will be recognize.

450,000 market value - 66,000 interest payable: 384,000 payment on the note principal

the entry will write-off the interest payable, decrease the note by that amount and recognize the land gain on disposal

You might be interested in
A stockholder sold her shares and made a profit of $1,403. If that is a profit of 27%, how much were the shares worth when she o
tigry1 [53]

The worth of the shares when the stockholder originally purchased them is $1105.

<h3>What are shares?</h3>

Shares are fractional ownership interests in a corporation. For some businesses, shares are a type of financial instrument that allows for the equitable distribution of any declared residual profits in the form of dividends.

It is assumed that the purchase price of the share is $100. As the stockholder sold her shares for $1,403, making a profit of 27%, it implies that:

  127 = $1,403

∴ 100 = $1,403/127 × 100

        = $1104.72

Therefore, $1104.72 is the original purchase price of the share.

To learn more about share, click here:

brainly.com/question/28392295

#SPJ1

7 0
1 year ago
Zeus Industries sells satellite television systems. Recently, the company invested heavily in one of the many new technologies a
Elanso [62]

Answer: Filtering

Explanation:

Filtering in communication occurs when information passed on between two bodies is being reduced by the middlemen, where the middlemen are not able to communicate favourable with either party and it affects either of the party, it's called filtering. The inability for the salesperson's to communicate the technical knowledge of the product to the customers which they are being taught during trainings is known as filtering in communication. This causes the business loss as the customers are not able to operate the equipment effectively which the business sells.

6 0
3 years ago
A ticket to a concert costs $45. You have a ticket and can resell it for $75. Your opportunity cost of actually attending the co
Amanda [17]

Answer:

$75

Explanation:

7 0
2 years ago
Decision Point: Your Final Meeting: RC Helicopter Piloting Radio controlled helicopter Your next client is Alan, who runs a high
hoa [83]

Answer:

Leave the price alone. Although it may lack some of the features that competitors’ models have, the Boss brand is well-recognized and well-respected in the market

Explanation:

You chose to lower the price to $359.That was the best choice.During the maturity stage of the product life cycle, increased competition eventually forces price cutting, and market share leadership may outweigh profit as a pricing objective, so this is a good option. However, it would take some research to determine whether the company can still make a profit at this price.

8 0
3 years ago
Michael wong and sanjay patel, both lawyers, start a law firm together. both of them have unlimited liability for the debts of t
UNO [17]

The law firm that Michael Wong and Sanjay Patel started together is an example of general partnership. The general partnership is a way where partners have an arrangement of joining together in one business that will provide them unlimited liability in terms of the obligations in their partnership.

6 0
3 years ago
Other questions:
  • A financially-responsible person reacts quickly to problems. True or False
    6·2 answers
  • "what must be demonstrated to prove that a company engaged in predatory pricing?"
    6·2 answers
  • Suppose we have the following Treasury bill returns and inflation rates over an eight year period:Year Treasury Bills (%) Inflat
    13·1 answer
  • Outward-oriented policiesa. allow countries to take advantage of gains from trade.b. have generally led to high growth for the c
    11·1 answer
  • A _____ is an association of producers that control supply and prices
    11·1 answer
  • The relevant range of activity refers to the_______________.
    13·1 answer
  • Beyer Company is considering the purchase of an asset for $215,000. It is expected to produce the following net cash flows. The
    11·1 answer
  • Pharoah Company had the following two transactions related to its delivery truck. 1. Paid $280 for an oil change. 2. Paid $600 t
    7·1 answer
  • When is it better to file married filing separately?
    14·1 answer
  • Jacob’s daily tips this work week were $99, $78, $58, $91, $90, and $68. Is Jacob correct in thinking that the median best repre
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!