q1

1. For the year ended Dec. 31,2019. What is the amount of interest income that ABC Co recorded regarding leased equipment to XYZ Inc. for ten years, and the title will pass to XYZ Inc. ABC Co requires ten equal annual payments of $33,300 on July 1 of each year, and XYZ made the first payment on July 1, 2019. Assume that the present value at July 1, 2019, of the rent payments over the lease term is discounted at 6% (the appropriate interest rate) was $275,000. (3 Points) $11,000 $23,976 $8,991 $13,320 2. LOYAL Company receives a $7,000, 4-month, 8% promissory note from XYZ Company in settlement of an open accounts receivable. What credit entry will ABC company make upon receiving the note? (3 Points) 140 Cr. Interest Revenue Geni 560 Or. Interest Revenue 7,140 Cr. Notes Receivable. 7,000 Gr. Accounts Receivable