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On November 1, 2021, Sweet Acacia Farm Equipment sold a harvesting machine to Stead Industries. Instead of a cash payment, Stead Industries gave Sweet Acacia
On November 1, 2021, Sweet Acacia Farm Equipment sold a harvesting machine to Stead Industries. Instead of a cash payment, Stead Industries gave Sweet Acacia Farm Equipment a $95,000, two-year, 6.0% note. The note required interest to be paid quarterly starting February 1, 2022. Sweet Acacia Farm Equipment's financial statements are prepared on a calendar-year basis. The following instructions refer only to this note receivable. (a) Your answer has been saved. See score details after the due date. Prepare journal entries for Sweet Acacia Farm Equipment for the full term of the note. Include the sale of the equipment on Nov. 1, 2021, receipt of interest, adjusting entries required on December 31, 2021 and 2022, and the collection of the note on November 1, 2023. Ignore Cost of Goods Sold. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Cre Nov. 1.2021 Notes Receivable 9500 Sales Dec 31, 2021 Interest Receivable 950 Interest Revenue Feb. 1,2022 Cash 1425 Interest Receivable Interest Revenue May 1, 2022 V Cash 1425 Interest Revenue Aug. 1, 2022 V Cash 1425 Interest Revenue Interest Revenue Aug. 1, 2022 Cash 1425 Interest Revenue Nov. 1, 2022 Cash 1425 Interest Revenue Dec 31, 2022 Interest Receivable 950 Interest Revenue Feb. 1, 2023 Cash 1425 Interest Receivable Interest Revenue May 1, 2023 Cash 1425 Interest Revenue Interest Revenue May 1, 2023 Cash 1425 Interest Revenue Aug. 1, 2023 v Cash 1425 Interest Revenue Nov. 1, 2023 Cash 96425 Interest Revenue Notes Receivable What amount will reported for interest revenue for Sweet Acacia's income statements for the years ended December 31, 2021, 2022, and 2023? Assuming Sweet Acacia prepares a multiple-step income statement, how will interest revenue be classified? SWEET ACACIA FARM EQUIPMENT Partial Statement of Income 2023 2022 2021 Interest revenue $ $ $
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