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On December 31, 2015, Grouper Co. performed environmental consulting services for Hayden Co. Hayden was short of cash, and Grouper Co. agreed to accept a
On December 31, 2015, Grouper Co. performed environmental consulting services for Hayden Co. Hayden was short of cash, and Grouper Co. agreed to accept a $160,000 zero-interest-bearing note due December 31, 2017, as payment in full. Hayden is somewhat of a credit risk and typically borrows funds at a rate of 11%. Grouper is much more creditworthy and has various lines of credit at 6%. (a) Prepare the journal entry to record the transaction of December 31, 2015, for Grouper Co. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and final answers to 2 decimal places, eg. 5,275.25. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Dec. Notes Receivable 2015 Discount on Notes Receivable 31, 160,000 Service Revenue
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