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On September 17, 2022, AAA Security sold an alarm system to Wondermart in exchange for a 2-year, $600,000 note bearing interest at 7%. Wondermart will
On September 17, 2022, AAA Security sold an alarm system to Wondermart in exchange for a 2-year, $600,000 note bearing interest at 7%. Wondermart will repay the note in two equal payments. AAA Security follows IFRS and therefore uses the effective interest method. AAA Security does not use reversing entries. AAA Security has a December 31 Year end. Required Calculate the payment. Prepare all journal entries required for the note for AAA Security, from the initial sale to full repayment. Count exact days for the year-end interest revenue adjustment. Round amounts to the nearest dollar. (25 marks)
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