On January 2, 2017, Adani Inc. sells goods to Geo Company in exchange for a zero-interest-bearing note

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On January 2, 2017, Adani Inc. sells goods to Geo Company in exchange for a zero-interest-bearing note with face value of $11,000, with payment due in 12 months. The fair value of the goods at the date of sale is $10,000 (cost $6,000). Prepare the journal entry to record this transaction on January 2, 2017. How much total revenue should be recognized in 2017?
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...
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Intermediate Accounting

ISBN: 978-1118742976

16th edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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