Cambrla LImlted took a $250,000 two-year note recelvable from a customer in connection with a major Inventory sale transaction on 1 January 205. The note required annual end-of-year Interest payments of 4%, and the principal was due at the end of 206. (PV of \$1. PVA of \$1, and PVAD of \$1.) (Use approprlate factor(s) from the tables provided.) Required: 1. Prepare joumal entrles to record the Inltial sale transaction and each payment on the books of Cambrla, assuming that the market Interest rate is 4%. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time value factor to 5 decimal places and final answers to the nearest whole dollar amount.) 2. Assume now that the market Interest rate is 8%. Calculate the present value of the note, and prepare a schedule that shows the annual Interest. (Round time value factor to 5 decimal places and final answers to the nearest whole dollar amount. Enter all answers in positlve.) 3. Prepare journal entrles to record the Inltial sale transaction and each payment on the books of Cambrla, consistent with requirement 2. Use the gross method to record the note. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time value factor to 5 decimal places and final answers to the nearest whole dollar amount.) 4. This part of the question is not part of your Connect assignment. 5. Prepare journal entries to record the Initial sale transaction and each payment on the books of the customer who bought Inventory and owes the note, consistent with requirement 2 (If no entry is required for a transaction/event, select "No journal entry required" In the first account field. Round time value factor to 5 decimal places and final answers to the nearest whole dollar amount.) Cambrla LImlted took a $250,000 two-year note recelvable from a customer in connection with a major Inventory sale transaction on 1 January 205. The note required annual end-of-year Interest payments of 4%, and the principal was due at the end of 206. (PV of \$1. PVA of \$1, and PVAD of \$1.) (Use approprlate factor(s) from the tables provided.) Required: 1. Prepare joumal entrles to record the Inltial sale transaction and each payment on the books of Cambrla, assuming that the market Interest rate is 4%. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time value factor to 5 decimal places and final answers to the nearest whole dollar amount.) 2. Assume now that the market Interest rate is 8%. Calculate the present value of the note, and prepare a schedule that shows the annual Interest. (Round time value factor to 5 decimal places and final answers to the nearest whole dollar amount. Enter all answers in positlve.) 3. Prepare journal entrles to record the Inltial sale transaction and each payment on the books of Cambrla, consistent with requirement 2. Use the gross method to record the note. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time value factor to 5 decimal places and final answers to the nearest whole dollar amount.) 4. This part of the question is not part of your Connect assignment. 5. Prepare journal entries to record the Initial sale transaction and each payment on the books of the customer who bought Inventory and owes the note, consistent with requirement 2 (If no entry is required for a transaction/event, select "No journal entry required" In the first account field. Round time value factor to 5 decimal places and final answers to the nearest whole dollar amount.)
