Question
By December 31, 2020,BrambleCorp. had performed a significant amount of environmental consulting services forCullumberLtd.Cullumberwas short of cash, andBrambleagreed to accept a $168,000, non-interest-bearing note due
By December 31, 2020,BrambleCorp. had performed a significant amount of environmental consulting services forCullumberLtd.Cullumberwas short of cash, andBrambleagreed to accept a $168,000, non-interest-bearing note due December 31, 2022, as payment in full.Cullumberis a bit of a credit risk and typically borrows funds at a rate of15%.Brambleis much more creditworthy and has various lines of credit at8%.BrambleCorp. reports under IFRS. The tables in this problem are to be used as a reference for this problem.
- AssumingBramble'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.)
Note receivable
interest income
- AssumingBramble'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 0 for the amounts.)
Note receivable
interest income
Cash
Note receivable
- What are the amount and classification of the note onBrambleCorp.'s statement of financial position as at December 31, 2021?(Round answer to 0 decimal places, e.g. 58,971.)
Balance
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