Question
On July 1, 2019, SEK Company sold goods to Grant Company for $900,000 in exchange for a 4-year, zero-interest-bearing note with a face amount of
On July 1, 2019, SEK Company sold goods to Grant Company for $900,000 in exchange for a 4-year, zero-interest-bearing note with a face amount of $1,416,163. The goods have a cost on SEK's books of $590,000.
How much revenue should it report related to this transaction on December 31, 2019?
Use the following journal entries and explain the calculation behind it:
Dr. Notes Receivable
Cr. Interest Revenue
Step by Step Solution
3.45 Rating (152 Votes )
There are 3 Steps involved in it
Step: 1
Answer The revenue reported on December 31 2019 should be 675000 The calculation behind thi...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Intermediate Accounting IFRS
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
3rd edition
1119372933, 978-1119372936
