On December 31, 2006 Jeltz Corporation sold some of its product to Beaty Company
accounting teacher (Not rated)
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| On December 31, 2006 Jeltz Corporation sold some of its product to Beaty Company, accepting a 3%, four-year promissory note having a maturity value of $900,000 (interest payable annually on December 31). Jeltz Corporation pays 6% for its borrowed funds. Beaty Company, however, pays 8% for its borrowed funds. The product sold is carried on the books of Jeltz at a manufactured cost of $570,000. Assume Jeltz uses a perpetual inventory system. Instructions (a) Prepare the journal entries to record the transaction on the books of Jeltz Corporation at December 31, 2006. (assume that the effective interest method is used. Use the interest tables below and round to the nearest dollar.) (b) Make all appropriate entries for 2007 on the books of Jeltz Corporation. (c) Make all appropriate entries for 2008 on the books of Jeltz Corporation Use appropriate present value tables in completing this exercise. |
11 years ago
On December 31, 2006 Jeltz Corporation sold some of its product to Beaty Company
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jeltz_corporation_sold_some.xls
