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On 1 July 2013 Bryson Ltd Sells a Machine to Adams

Question 18

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On 1 July 2013 Bryson Ltd sells a machine to Adams Ltd in exchange for a promissory note that requires Adams Ltd to make five payments of $8000,the first to be made on 30 June 2014.The machine cost Bryson Ltd $20 000 to manufacture.Bryson Ltd would normally sell this type of machine for $30 326 for cash or short-term credit.The implicit interest rate in the agreement is 10%.What are the appropriate journal entries to record the sale agreement and the first two instalments using the net-interest method?


A)
On 1 July 2013 Bryson Ltd sells a machine to Adams Ltd in exchange for a promissory note that requires Adams Ltd to make five payments of $8000,the first to be made on 30 June 2014.The machine cost Bryson Ltd $20 000 to manufacture.Bryson Ltd would normally sell this type of machine for $30 326 for cash or short-term credit.The implicit interest rate in the agreement is 10%.What are the appropriate journal entries to record the sale agreement and the first two instalments using the net-interest method? A) B) C) D)
B)
On 1 July 2013 Bryson Ltd sells a machine to Adams Ltd in exchange for a promissory note that requires Adams Ltd to make five payments of $8000,the first to be made on 30 June 2014.The machine cost Bryson Ltd $20 000 to manufacture.Bryson Ltd would normally sell this type of machine for $30 326 for cash or short-term credit.The implicit interest rate in the agreement is 10%.What are the appropriate journal entries to record the sale agreement and the first two instalments using the net-interest method? A) B) C) D)
C)
On 1 July 2013 Bryson Ltd sells a machine to Adams Ltd in exchange for a promissory note that requires Adams Ltd to make five payments of $8000,the first to be made on 30 June 2014.The machine cost Bryson Ltd $20 000 to manufacture.Bryson Ltd would normally sell this type of machine for $30 326 for cash or short-term credit.The implicit interest rate in the agreement is 10%.What are the appropriate journal entries to record the sale agreement and the first two instalments using the net-interest method? A) B) C) D)
D)
On 1 July 2013 Bryson Ltd sells a machine to Adams Ltd in exchange for a promissory note that requires Adams Ltd to make five payments of $8000,the first to be made on 30 June 2014.The machine cost Bryson Ltd $20 000 to manufacture.Bryson Ltd would normally sell this type of machine for $30 326 for cash or short-term credit.The implicit interest rate in the agreement is 10%.What are the appropriate journal entries to record the sale agreement and the first two instalments using the net-interest method? A) B) C) D)

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