PLEASE HAVE NEAT AND ORGANIZED SOLUTION.
Cambria Limited took a $240,000 two-year note recelvable from a customer in connection with a major Inventory sale transaction on 1 January 20X5. The note required annual end-of-year interest payments of 6%, and the principal was due at the end of 20x6. (PV of $1. PVA of S1, and PVAD of $15 (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare Journal entries to record the initial sale transaction and each payment on the books of Cambria, assuming that the market Interest rate is 6%. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. Round time value factor to 5 declmal places and final answers to the nearest whole dollar amount.) View transaction ist View journal entry worksheet No Date General Journal Debit Credit 2 1 1 January 20x5 Notes receivable Sales revenue 2 31 December 20x5 Cash Interest revenue 3 31 December 20X6 Cash Interest receivable Notes receivable 2. Assume now that the market interest rate is 12%. Calculate the present value of the note, and prepare a schedule that shows the annual interest (Round time value factor to decimal places and final answers to the nearest whole dollar amount. Enter all answers in positive.) Opening Net Liability Recevable Interest Expense/Rovenue Interest Pald! Received Discount Amortization Closing Net Liability Receivable 3. Prepare journal entries to record the initial sale transaction Ad each payment on the books of Cambria, consistent with requirement 2. Use the gross method to record the note. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time value factor to 5 decimal places and final answers to the nearest whole dollar amount.) View transaction lat View journal entry worksheet No Data General Journal Dobit Credit 1 1 January 20x5 Notes receivable Discount on note receivable Sales revenue 2 31 December 20X5 Cash Discount on note receivable Interest revenue 3 31 December 20X6 Cash Discount on note receivable Interest revenue Notes receivable 4. Not avallable in connect 5. Prepare journal entries to record the initial sale transaction and each payment on the books of the customer who bought inventory and owes the note, consistent with requirement 2. (If no entry is required for a transaction/event, select "No Journal entry required In the first account field. Round time value factor to 5 decimal places and final answers to the nearest whole dollar amount.) View transaction ist View journal entry worksheet No Debit Credit 1 Date General Journal 1 January 2035 Inventory Discount on not payable Notepayable 2 31 December 20X5 Interested Discount on not payable Cash 3 31 December 2006 Interest open Nou payable Discount on note payable Cash
