Accounting H/W..Journal Entries

May 5th, 2015
Business Finance
Price: $5 USD

Question description

On April 1, 2014, Corron sold a patent to Tilton Company in exchange for a $200,000 zero interest bearing note due on April 1, 2016.  There was no established exchange price for the patent and the note had no ready market value.  The prevailing interest rate for a note of this type on April 1, 2014 was 10%. The patent had a carrying value of $50,000 on January 1, 2014 and the amortization for the year ended December 31, 2014 would have been $6000.  The collection of the note receivable from Tilton Company was reasonably assured.

Required: Prepare all journal entries and adjusting entries that  Corron company would make for 2014,  2015 and 2016 related to the sale of the patent. Corron’s fiscal year ends on December 31st.

-enter calculations used (N=,I/Y=,PV=,PMT=,FV=,)

Tutor Answer

(Top Tutor) verah
School: Rice University

Studypool has helped 1,244,100 students

Review from student
" Wow this is really good.... didn't expect it. Sweet!!!! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1827 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors