On July 1, 2020, Sac Inc made two 1. It sold excess and in exchange for four year, non interest bearing possory note in the face amount of $1,065,470. The land's carrying value is $500,000 2. It rendered services in exchange for at year promissory note having a face value of $500,000. Interest at a rate of 4% is payable annually The customers in the above transactions have credit ratings that require them to borrow money at 10% Interest, Sage Hill recently had to pay interest for money it borrowed from British Bank. 3. On July 1, 2020, Sage Hill also agreed to accept an instalment note from one of its customers in partial settlement of accounts receivable that were overdue. The note calls for four equal payments of $21,200, including the principal and interest due, on the anniversary of the note. The implied interest rate on this note is 8%. The tables in this problems are to be used as a reference for this problem, Click here to view the factor table PRESENT VALUE OEL Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF (0) Prepare the joumal entries to record the three notes receivable transactions of Sage Hill Inc on July 1, 2020. (For calculation purposes, ose 5 decimal places as displayed in the factor tabile provided. Round answers to 0 decimal places, c.9. 58.971. Credit account titles are automatically indented when amount is entered. Do not loent Tally. If no entry is required select "No Entry for the account titles and enter for the amounts) No. Account Titles and Explanation Debit Credit 2 + RACK Question 1 On July 1, 2020, Sage Hill Inc, made two sales: 1. It sold excess and in exchange for a four-year, non-interest bearing promissory note in the face wount of $1,065,870. The band's carrying value is $500,000 2. It rendered services in exchange for an eight-year promissory not having a fan value of $500,000. Interest at a rate of 4% is payable annual The customers in the above transactions have credit ratings that require them to borrow money at 10% interest. Sage Hill recently had to pay o interest for money it borrowed from British Bank 3. On July 1, 2020, Sage Hill also agreed to accept an instalment note from one of its customers in partial settlement of accounts receivable that were overdue. The note calls for four equal payments of $21,200, Induding the principal and interest due, on the anniversary of the noto. The Implied interest rate on this note is 8% The tables in this problem are to be used as a reference for this problem. Click here to view the factor table PRESENT VALUE OF Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Prepare the journal entries to record the three notes receivable transactions of Sage in Inc. on July 1, 2020. (For calculation purposes, se decimal plan as displayed in the factor table provided. Round answers to decimal places, c.0.5,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) No, Account Titles and Explanation Debit Credit 1. 2
