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
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
5th edition
78025915, 978-1259115400, 1259115402, 978-0078025914
