Question
On April 1, 20X1, Wolfpack Corp. sold inventory and received a $9,000, 12-month, 12% note in exchange for services provided to a customer. The note's
On April 1, 20X1, Wolfpack Corp. sold inventory and received a $9,000, 12-month, 12% note in exchange for services provided to a customer.
The note's face value plus interest will be due when the note matures on April 1, 20X2.
Required:
Prepare the following journal entries related to this note.
The entry to record the issuance of the note on April 1, 20X1
The entry to record the accrual of interest on December 31, 20X1, and
The entry to record the collection of the note and interest on April 1, 20X2.
Step by Step Solution
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Step: 1
The entry to record the issuance of the note on April 1 20X1 Cash 9000 Notes Receivable 9000 ...
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Introduction to Management Accounting
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
16th edition
978-0133058819, 9780133059748, 133058816, 133058786, 013305974X , 978-0133058789
