Question
On December 31, 2018, Hannah Corp. received a $100,000, 3-year, 6% Note from a customer for the purchase of inventory from Hannah. Interest payments associated
On December 31, 2018, Hannah Corp. received a $100,000, 3-year, 6% Note from a customer for the purchase of inventory from Hannah. Interest payments associated with the note are to be made annually and this customer usually borrows at a 12% rate of interest. Calculate the following amounts for Hannah Corp. related to this Note Receivable transaction
a Sales Revenue (on 12/31/2018)
b Interest Revenue on 12/31/2019
c Interest Revenue on 12/31/2020
d. Book Value of Note Receivable on 12/31/2020 (after interest payment due on this date was received)
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Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587
