Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

DONT NOT ATTEMPT IF YOU CANT ATTEMPT ALL QUESTIONS!! Show ALL work clearly!! 1. On April 1, 2012, Green Company finished consultation services and accepted

DONT NOT ATTEMPT IF YOU CANT ATTEMPT ALL QUESTIONS!! Show ALL work clearly!! image text in transcribed
1. On April 1, 2012, Green Company finished consultation services and accepted in exchange a note receivable with a face value of 600,000, a due date of April 1, 2015, and a stated rate of 6%, with interest receivable at the end of each year. The note of this type of risk is considered to have an appropriate market rate of interest of 10%. a. Fill up the following: Face rate value Stated Market rate b. Was this note receivable issued at discount, par, or premium? c. Determine the total sales revenue Green Company recognized on April 1, 2012. (The sales revenue is the issue price because this is essentially how much the company provides to their customer today. It helps to draw a timeline of cash flows for this question.) d. Provide all journal entries in 2012 and 2013

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting In Business

Authors: R. J. Bull

5th Edition

0408014865, 978-0408014861

More Books

Students also viewed these Accounting questions