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I have this question partially completed but I got some information wrong. The wrong accounts and amounts are circled in red. Can anybody help? On
I have this question partially completed but I got some information wrong. The wrong accounts and amounts are circled in red. Can anybody help?
On July 1, 2020, Teal Mountain Inc. made two sales: 1. It sold excess land in exchange for a four-year, non-interest-bearing promissory note in the face amount of $1,118,820. The land's carrying value is $530,000. It rendered services in exchange for an eight-year promissory note having a face value of $470,000. Interest at a rate of 2% is payable annually. 2. The customers in the above transactions have credit ratings that require them to borrow money at 11% interest. Teal Mountain recently had to pay 8% interest for money it borrowed from British Bank. 3. On July 1, 2020, Teal Mountain also agreed to accept an instalment note from one of its customers in partial settlement of accounts receivable that were overdue. The note calls for four equal payments of $21,800, including the principal and interest due, on the anniversary of the note. The implied interest rate on this note is 10%. The tables in this problem are to be used as a reference for this problem. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Your answer is partially correct. Prepare the journal entries to record the three notes receivable transactions of Teal Mountain Inc. on July 1, 2020. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. 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 for the amounts.) Debit Credit No. Account Titles and Explanation 1. Notes Receivable 0 1118820 Land 530000 Gain on Disposal of Land 588820 2. Notes Receivable 253800 0 0 0 Sales Revenue 253800 3. Notes Receivable 69084 Accounts Receivable 69084 e Textbook and Media List of Accounts On July 1, 2020, Teal Mountain Inc. made two sales: 1. It sold excess land in exchange for a four-year, non-interest-bearing promissory note in the face amount of $1,118,820. The land's carrying value is $530,000. It rendered services in exchange for an eight-year promissory note having a face value of $470,000. Interest at a rate of 2% is payable annually. 2. The customers in the above transactions have credit ratings that require them to borrow money at 11% interest. Teal Mountain recently had to pay 8% interest for money it borrowed from British Bank. 3. On July 1, 2020, Teal Mountain also agreed to accept an instalment note from one of its customers in partial settlement of accounts receivable that were overdue. The note calls for four equal payments of $21,800, including the principal and interest due, on the anniversary of the note. The implied interest rate on this note is 10%. The tables in this problem are to be used as a reference for this problem. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Your answer is partially correct. Prepare the journal entries to record the three notes receivable transactions of Teal Mountain Inc. on July 1, 2020. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. 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 for the amounts.) Debit Credit No. Account Titles and Explanation 1. Notes Receivable 0 1118820 Land 530000 Gain on Disposal of Land 588820 2. Notes Receivable 253800 0 0 0 Sales Revenue 253800 3. Notes Receivable 69084 Accounts Receivable 69084 e Textbook and Media List of AccountsStep by Step Solution
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