On June 1, 2015, Demer Consulting provides services to a customer for $150,000. To pay for the

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On June 1, 2015, Demer Consulting provides services to a customer for $150,000. To pay for the services, the customer signs a three-year, 12% note. The face amount is due at the end of the third year, while annual interest is due each June 1.

Required:

1. Record the acceptance of the note on June 1, 2015.

2. Record the interest collected on June 1 for 2016 and 2017, and the adjustment for interest revenue on December 31, 2015, 2016, and 2017.

3. Record the cash collection on June 1, 2018.

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Financial Accounting

ISBN: 978-0078025549

3rd edition

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

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Question Posted: Jul 15, 2014 03:47 AM

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On June 1, 2015, Demer Consulting provides services to a customer for $150,000. To pay for the

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Requirement 1 June 1 2015 Debit Credit Notes Receivable 150000 Service Revenue 150000 Provide servic...View the full answer

Financial Accounting

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