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On December 31, 2020, Cheyenne Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Cheyenne Co. agreed to accept a $287,800 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Cheyenne is much more creditworthy and has various lines of credit at 6%. Prepare the journal entry to record the transaction of December 31, 2020, for the Cheyenne Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Notes Receivable Discount on Notes Receivable Service RevenueAssuming Cheyenne Co.'s fiscal year-end is December 31, prepare the journal entry for December 31, 2021. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2021 Discount on Notes Receivable Interest Revenue eTextbook and Media List of AccountsAssuming Cheyenne Co.'s fiscal year-end is December 31, prepare the journal entry for December 31, 2022. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2022 Discount on Notes Receivable Interest Revenue (To record interest revenue) Cash Notes Receivable (To record collection of note) eTextbook and Media List of AccountsCrane Incorporated sold $100,000 of accounts receivable to Gannon Factors Inc. on a with recourse basis. Gannon assesses a 2% finance charge of the amount of accounts receivable and retains an amount equal to 6% of accounts receivable for possible adjustments. Prepare the journal entries for Crane Incorporated and Gannon Factors to record the sale of the accounts receivable to Gannon assuming that the recourse liability has a fair value of $9,000. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Crane Incorporated Cash 96000 Due from Factor 2000 Loss on Sale of Receivables 11000 Accounts Receivable 100000 Recourse Liability 9000 Gannon Factors Accounts Receivable 100000 Due to Customer 2000 Interest Revenue 2000 Cash 96000
