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On 1 July,2003 Bryson Ltd Sells a Machine to Adams

Question 36

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On 1 July,2003 Bryson Ltd sells a machine to Adams Ltd in exchange for a promissory note which requires Adams Ltd to make five payments of $8,000,the first to be made on 30 June,2004.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 per cent.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,2003 Bryson Ltd sells a machine to Adams Ltd in exchange for a promissory note which requires Adams Ltd to make five payments of $8,000,the first to be made on 30 June,2004.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 per cent.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) E) None of the given answers.
B) On 1 July,2003 Bryson Ltd sells a machine to Adams Ltd in exchange for a promissory note which requires Adams Ltd to make five payments of $8,000,the first to be made on 30 June,2004.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 per cent.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) E) None of the given answers.
C) On 1 July,2003 Bryson Ltd sells a machine to Adams Ltd in exchange for a promissory note which requires Adams Ltd to make five payments of $8,000,the first to be made on 30 June,2004.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 per cent.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) E) None of the given answers.
D) On 1 July,2003 Bryson Ltd sells a machine to Adams Ltd in exchange for a promissory note which requires Adams Ltd to make five payments of $8,000,the first to be made on 30 June,2004.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 per cent.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) E) None of the given answers.
E) None of the given answers.

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