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Furkat [3]
2 years ago
12

On January 2, 2022, McClelland Company purchased a machine and signed a noninterest-bearing note in payment. The note matures in

4 years and requires McClelland to pay $70,000 at maturity. McClelland also had the option to purchase the the machine in cash from a different vendor for $56,505. At what amount should the machine be recorded upon purchase
Business
1 answer:
tresset_1 [31]2 years ago
6 0

The amount that McClelland Company should record the machine upon purchase is<u> $56,505.</u>

<h3>Recording the transaction</h3>

The proper way to record the transaction based on U.S. GAAP polices is to debit the Machine account with the price of $56,505 as this represents the market value of the machine.

The company should also credit the Notes payable account with $70,000 being the value of the note acquired. A debit will go to the Discount on Note account for $13,495 which is the difference between the note and value of machine.

Find out more on recording Notes Payable at brainly.com/question/17073934.

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Actual budget performance report compares actual performance and budgeted performance based on actual activity level.

<h3>What is a budget?</h3>

A budget serves as a term that describes how to place our needs on our income, it is a way to balance our expenses and income.

Actual budget performance report gives room to

compares actual performance and budgeted performance based on actual activity level.

Learn more about budget at:

brainly.com/question/6663636

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2 years ago
What resourse is both renewable and inexpensive?<br><br> gold<br> coal<br> lumber<br> mineral
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4 years ago
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4 0
3 years ago
What are the basic element of selection of profession describe any two of them​
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Answer:

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•In this capacity, and most fundamentally, a professional habitually makes the right choices because all of his choices are based on the integrity provided by his moral and ethical foundation. Any choice of expedience over integrity can quite easily be recognized by anyone as the wrong choice. Here, the professional simply acknowledges what is obvious, makes the right choice, and acts deliberately (and now we're back at the start of this list).

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3 years ago
Bill spent most of his month’s allowance for expensive tickets to a rock concert after Lorene said she would go with him. On the
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