Question 2: Revenue (25 marks) (a) Joey Ltd is entering into a contract to sell Motor vehicle spare parts to Rachel Ltd for $20 000. The agreement allows Rachel Ltd to pay for these goods by three equal instalments of $5 000 and the balance remaining payable in the final instalment, the first instalment being required on delivery and the remainder to be paid every 4 months over the coming year. The Motor Vehicle spare parts are delivered to Rachel Lid on 1 March 2019. Johnson Lid determine that an appropriate discount rate for interest on this transaction is 8% per annum. The agreement stipulates that the interest revenue is due and payable when each repayment is due. Narrations are required for this question. Add rows to the answer tables if necessary. Required (i) Complete the table below to determine the interest component of the payments. (6 marks) (ii) Give the journal entries to record the revenue. Note that giving the correct dates of your journal entries is essential. (12 marks) Date Opening Cash receipt Interest Principal Outstanding Balance income reduction balance The answer sheet for question 2 (a) continues on the next page