could you please answer the 3 questions below for me, thanks!
Problem 1 The unadjusted notes receivable balance as at December 31, 20x5 is $3,163,059. During 20x5, two notes receivable were created: $2,000,000 $1,500,000 Sale of inventory on January 2, 20x5 on the following terms: interest of 2% payable on December 31 of each year for three years with the principal amount of $2,000,000 payable on December 31, 20x7. The cash price of the inventory would have been $1,186,000. The entry to record the transaction was to debit Notes Receivable and credit revenue. The interest payment of $40,000 was received on December 3] and credited to revenue. Sale of inventory on January 2, 20x5 on the following terms: blended payments of principal and interest of 4% over 5 years with the rst payment due on December 31, 20x5. The customer's incremental borrowing rate is 8%. Floyd's incremental borrowing rate is 6%. The entry to record the initial transaction was to debit Notes Receivable and credit revenue for $1,500,000. The rst payment was received at year-end and was credited to the Notes Receivable Account. Required Prepare the adjusting journal entries to adjust the notes receivablefrevenue accounts at December 31, 20x5. Problem 2 Floyd Co. uses a periodic inventory system and counted the inventory on December 31, 20x5. The total inventory counted added up to $6,876,500 before taking into account the following: Late in the day on December 31, goods costing $256,000 were sold for $510,000. These goods had been counted earlier in the day. The sale was recorded on January 3, 20x6. The cheque from the customer in the amount of $510,000 was also deposited on January 3, 20x6. Goods costing $48,500 were shipped om a supplier on terms FOB shipping on December 28, 20x5 and were delivered on January 4, 20x6. The invoice was recorded as a payable on January 4, 20x6. Goods costing $65,200 were shipped from a supplier on terms FOB destination on December 30, 20x5 and were delivered on January 7, 20x6. The invoice was recorded as a payable on January 7, 20x6. The inventory count did not include $36?,000 of goods held on consignment by some of Floyd's customers. The company's unadjusted trial balance as at December 31, 20x5 showed a balance of $6,342,000 in the Merchandise Inventory account and a balance of $1 ?,53 6,000 in the Purchases of Merchandise account. Required - Prepare the journal entry to adjust Floyd's Inventory account and any other necessary adjusting journal entryfentlies as at December 31, 20x5. Problem 3 Gillespie Corp. is preparing the nancial statements at its scal year end, December 31, 20x2. The following information is available: At Cost At Retail Inventory, January 1, 20X1 ........................ $ 208,500 $ 465,300 Markdowns 11?,500 Markups 171,500 Markdown cancellations ............................ 55,000 Markup cancellations ................................. 22,500 Purchases 603,000 1,324,350 Sales ........................................................... 1,450,000 Purchases returns and allowances .............. 12,875 30,150 Sales returns and allowances ..................... 22,500 Required Calculate the ending inventory at cost at December 31, 20x2, using the retail method that approximates lower of average cost and market. Your solution should be in good form with amounts clearly labelled. Carry the cost ratio to two decimals, e.g., 12.34%
