1. Cornett company, a tennis racket manufacturing company, was given $400,000 worth of property from an independent developer as an incentive to build a factory there. prepare the journal entry for cornett to record the receipt of the land.
2. Hemingway company purchases equipment by issuing a seven year, $350,000 non-interest-bearing note, when the market rate for this type of note is ten percent. Hemingway will pay off the note with equal payments to be made at the end of each year. prepare the journal entry to record Hemingway's acquisition of the equipment.
3. Goodman company acquired a truck from Harmes company in exchange for a machine. The exchange is determined to have commercial substance. The machine cost $30,000, has a book value of $6,000, and has a market value of $9,000. The truck has a cost of $12,000 and a book value of $8,000 on Harmes' books. prepare journal entries for goodman and Harmes to record the exchange i believe.