(Solution) Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for...

I need help with this problem. I am just trying to get this long enough to submit.  Anyone?Amber Mining and Milling, Inc., contracted with Truax Corpora±on 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, three-year note that speciFed 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

 

transac±ons that 12% was a reasonable rate of interest.

 

1.

 

Prepare the journal entry on January 1, 2016, for Truax Corpora±on’s sale of the lathe.

 

2.

 

Prepare an amor±za±on 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 maturity for Truax.

 

---

Solution details:

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 21, 2023

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

• ■ As a reference for in-depth understanding of the subject.
• ■ As a source of ideas / reasoning for your own research (if properly referenced)
• ■ For editing and paraphrasing.

This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

Get Free Price Quote