Question
On Jan 1, 2016, Zahid sold a truck to Othaim in exchange for a $200,000, 6% (payable annually), 5 year, notes payable. On Jan 1,
On Jan 1, 2016, Zahid sold a truck to Othaim in exchange for a $200,000, 6% (payable annually), 5 year, notes payable. On Jan 1, 2016, the market rate was 8%.
| Date | Cash Received | Int. Revenue | Pre Amrt. | Carrying Value |
| 1-Jan-16 | | | | |
| 1-Jan-17 | | | | |
| 1-Jan-18 | | | | |
| 1-Jan-19 | | | | |
| 1-Jan-20 | | | | |
| 1-Jan-21 | | | | |
| Requirements: | ||
| (1) | What is the sale revenue that Zaid should recognize on Jan 1, 2016? | |
| (2) | What is the interest revenue that Zaid should recognize on Dec 31, 2016? | |
| (3) | What is the Pre Amrt. that Zaid should recognize on Dec 31, 2018? | |
| (4) | What is the carrying value of the notes on Dec 31, 2019? | |
| (5) | What is the interest receivable related to the notes on Dec 31, 2020? | |
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Intermediate Accounting 2014 FASB Update
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
15th edition
978-1118938782, 111893878X, 978-1118985311, 1118985311, 978-1118562185, 1118562186, 978-1118147290
