ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 37
Prepare a computation of the carrying value of the patent at
December 31,
2015.
5) On August 31, Latty Co. partially refunded $401,000 of its
outstanding 10% note payable made one year ago to Dugan
State Bank by paying $401,000 plus $40,100 interest, having
obtained the $441,100 by using $126,240 cash and signing a
new one-year $346,000 note discounted at 9% by the bank.
6) Make the entry to record the partial refunding. Assume
Latty Co. makes reversing entries when appropriate. (Credit
account titles are automatically indented when the amount is
entered. Do not indent manually.)
6)
7) Prepare the adjusting entry at December 31, assuming
straight-line amortization of the discount. (Credit account titles
are automatically indented when the amount is entered. Do not
indent manually.)