Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Can you show how to correct the red answers by using a calculator? On July 1, 2017, Pharoah Inc. made two sales. 1. It sold
Can you show how to correct the red answers by using a calculator?
On July 1, 2017, Pharoah Inc. made two sales. 1. It sold land having a fair value of $914,620 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,339,102. The land is carried on Pharoah's books at a cost of $600,100. 2. It rendered services in exchange for a 4%, 8-year promissory note having a face value of $405,130 (interest payable annually) Pharoah Inc. recently had to pay 7% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to bo at 10% interest. w money Record the two journal entries that should be recorded by Pharoah Inc. for the sales transactions above that took place on July 1, 2017. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. 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.) No. Date Account Titles and Explanation Debit Credit 1. July 1, 2017 Notes Receivable 1339102 Land 600100 Discount on Notes Receivable 424482 Gain on Disposal of Land 314520 2, July 1, 2017 Notes Receivable 405130 Discount on Notes Receivable 109105 Service Revenue 296025Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started