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Sage Inc. issues $2,500,000 of 7% bonds due in 15 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 12%. Click here to view factor tables What amount will Sage receive when it issues the bonds? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answer to O decimal places, e.g. 458,581.) Amount received by Sage when bonds were issued $3. Stellar Co. provides for doubtful accounts based on 2% of gross accounts receivable, The following data are available for 2020. Credit sales during 2020 $3,912,600 Bad debt expense 57,110 Allowance for doubtful accounts 1i1f20 16,250 Collection of accounts written off in prior years [customer credit was reestablished} 8,520 Customer accounts written off as uncollectible during 2020 28,190 What is the balance in Allowance for Doubtful Accounts at December 31, 2020? Allowance for doubtful accounts 12.131110 $ On January 1, 2020, Sarasota Company issued a $1,051,950, 5-year, zero-interest-bearing note to Ivanhoe Bank. The note was issued to yield 9% annual interest. Unfortunately, during 2021 Sarasota fell into financial trouble due to increased competition. After reviewing all available evidence on December 31, 2021, Ivanhoe Bank decided that the loan was impaired. Sarasota will probably pay back only $701,300 of the principal at maturity. (a)Prepare journal entries for both Sarasota Company and Ivanhoe Bank to record the issuance of the note on January 1, 2020. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit Sarasota Company (Debtor): 1. Ivanhoe Bank (Creditor): 2.On April 1, 2020, Kingbird Company assigns $549,200 of its accounts receivable to the Third National Bank as collateral for a $305,600 loan due July 1, 2020. The assignment agreement calls for Kingbird to continue to collect the receivables. Third National Bank assesses a finance charge of 3% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type). Your answer is partially correct. Prepare the April 1, 2020, journal entry for Kingbird Company. (If no entry is required, select "No Entry" for the account titles and enter 0 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 Apr. 1, 2020 Cash 289124 16476 Notes Payable 305600
