By December 31, 2020, Culver Corp. had performed a significant amount of environmental consulting services for Sunland Ltd. Sunland was short of cash, and Culver agreed to accept a $170,000, non-interest-bearing note due December 31, 2022, as payment in full. Sunland is a bit of a credit risk and typically borrows funds at a rate of 15%. Culver is much more creditworthy and has various lines of credit at 8%. Culver Corp.reports under IFRS. The tables in this problem are to be used as a reference for this problem. 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. Prepare the journal entry to record the transaction on December 31, 2020, for Culver Corp. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Credit account titles are automatically indented when 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.) Account Titles and Explanation Debit Credit Assuming Culver's fiscal year end is December 31, prepare the journal entry required at December 31, 2021. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Credit account titles are automatically indented when 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.) Account Titles and Explanation Debit Credit Assuming Culver's fiscal year end is December 31, prepare the journal entry required at December 31, 2022. (Round answers to 0 decimal places, e.g. 58,971. Credit account titles are automatically indented when 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.) Account Titles and Explanation Debit Credit (To record interest income) (To record maturity) What are the amount and classification of the note on Culver Corps statement of financial position as at December 31, 2021? (Round answer to O decimal places, e.g. 58,971.) The balance of the note at December 31, 2021 $ The note would be classified as a on the balance sheet. e Textbook and Media List of Accounts Assume instead that Culver reports under ASPE and uses the straight-line method to amortize the discount on the note. What would the interest income be relating to the note for 2021 and 2022? (Round answer to 0 decimal places, e.g. 58,971.) Interest income for 2021 $ Interest income for 2022 $
