On January 1, 2020, Jacobs Company sells land financed through a $16,000 note, issued by Andress Company. The note is a $16,000,
1 answer:
Answer:
Note: <em>See attached picture for journal entry schedule for the question</em>
<em />
Fair Value of Land = -PV(I, N, PMT, FV, Type)
Fair Value of Land = -PV(8%, 2, 16000*4%, 16000, 0)
Fair Value of Land = -PV(8%,2,640,16000,0)
Fair Value of Land = $14,859
Journal Entry
Date Account tile and explanation Debit Credit
Jan. 1 Notes Receivable $16,000
To, Discount on Notes $1,141
To, Land $14,859
Dec. 31 Cash $640
Discount on Notes $549
To, Interest Revenue (14859*8%) $1,189
Dec. 31 Cash $640
Discount on Notes $593
To, Interest Revenue (14859+549)*8% $1,233
Dec. 31 Cash $16,000
To, Notes Receivable $16,000
You might be interested in
Answer:
$0.25
Explanation:
The marginal cost of the sixth pencil is given by the difference in total cost of purchasing 6 pencils from the cost of purchasing 5 pencils. That is, the change in cost caused by the addition of the sixth unit of output:
The marginal cost of the sixth pencil is $0.25