9)

Sunland Inc. provided several entertainment services to Swifty Corporation in the past. On January 1, 2023, when the receivable for the past services was due, Swifty was unable to pay the outstanding balance. Sunland agreed to accept a $490,000 non-interest bearing note payable on December 31, 2024. Swifty typically could arrange this kind of financing at an interest rate of 15%. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Use 1. PV.1 Tables, 2. a financial calculator, or 3. Excel functions to arrive at the amount to record the note receivable. (Round present value factor calculations to 5 decimal places, e.g. 1.2512. Round PV tables and Excel function answers to O decimal places, e.g. 8,971 and round Financial calculator answer to 2 decimal places, e.g. 89.71.) Using Note receivable 1. PV tables $ 2. Financial calculator $ 3. Excel function eTextbook and Media Prepare the journal entry to record this transaction for Sunland Inc. on Jan 1, 2023. (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 O for the amounts. List all debit entries before credit entries. Round answers to O decimal places, e.g. 8,971.) Date Account Titles and Explanation Jan. 1, 2023 eTextbook and Media Debit Credit Prepare the journal entry for December 31, 2023 using the effective interest method. (Round answers to O decimal places, e.g. 8,971. 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 O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation December 31, 2023 eTextbook and Media Debit Credit Prepare the journal entries for December 31, 2024 using the effective interest method, and assuming that Swifty pays the note on schedule. (Round answers to O decimal places, e.g. 8,971. 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 O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation December 31, 2024 December 31, 2024 (To record interest) (To record collection) Debit Credit