The information is the same as the previous question:
On April 1, 2012, Green Company finished consultation services and accepted in exchange a note receivable with a face value of $600,000, a due date of April 1, 2015, and a stated rate of 6%, with interest receivable at the end of April 1. The note of this type of risk is considered to have an appropriate market rate of interest of 10%.
(1) Determine the total sales revenue Green Company recognized on April 1, 2012.
(2) Provide all journal entires in 2012 and 2013.
will you please explain answers part 1, and 2 take you
1) The total sales revenue Green Company recognized on April 1, 2012. = $600,000
2) Journal entires in 2012 and 2013:
ASSUMPTIONS:
Date | Particulars | Debit | Credit |
2012 April 1 |
Note receivable A/c DR. To Revenue |
600,000 | 600,000 |
2013 Mar 31 |
Interest receivables DR. Interest Revenue |
36000 | 36000 |
April 1 |
Cash DR. To Interest receivables |
36000 | 36000 |
2014 Mar 31 |
Interest receivables DR. Interest Revenue |
36000 | 36000 |
April 1 |
Cash DR. To Interest receivables |
36000 | 36000 |
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