THE PREVIOUS SOLUTION I GOT HAD INCORRECT ANSWERS. PLEASE DOUBLE CHECK ANSWERS & PUT IN SAME FORMAT AS BELOW. THANK YOU!
Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles. The snowmobiles were delivered on January 1, 2021, and Arctic received a note from Seneca indicating that Seneca will pay Arctic $46,200 on a future date. Unless informed otherwise, assume that Arctic views the time value of money component of this arrangement to be significant and that the relevant interest rate is 9% FV of $1, PV of $1, FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Assume the note indicates that Seneca is to pay Arctic the $46,200 due on the note on December 31, 2021. Prepare the journal entry for Arctic to record the sale on January 1, 2021. 2. Assume the same facts as in requirement 1, and prepare the journal entry for Arctic to record collection of the payment on December 31, 2021. 3. Assume instead that Seneca is to pay Arctic the $46,200 due on the note on December 31, 2022. Prepare the journal entry for Arctic to record the sale on January 1, 2021. 4. Assume instead that Arctic does not view the time value of money component of this arrangement to be significant, and that the note indicates that Seneca is to pay Arctic the $46,200 due on the note on December 31, 2021. Prepare the journal entry for Arctic to record the sale on January 1, 2021. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field. Round your final answers to the nearest whole dollar amount.) Answer is not complete. No Date General Journal Debit Credit 42,385 January 01, 2021 Accounts receivable Sales revenue 42,385 December 31, 202 Cash 48,200 42.385 X Accounts receivable Interest revenue 3.815 3 January 01, 2021 Accounts receivable 38,888 Sales revenue 38,888 January 01, 2021 Accounts receivable 46,200 | Sales revenue 46,200 Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles. The snowmobiles were delivered on January 1, 2021, and Arctic received a note from Seneca indicating that Seneca will pay Arctic $46,200 on a future date. Unless informed otherwise, assume that Arctic views the time value of money component of this arrangement to be significant and that the relevant interest rate is 9% FV of $1, PV of $1, FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Assume the note indicates that Seneca is to pay Arctic the $46,200 due on the note on December 31, 2021. Prepare the journal entry for Arctic to record the sale on January 1, 2021. 2. Assume the same facts as in requirement 1, and prepare the journal entry for Arctic to record collection of the payment on December 31, 2021. 3. Assume instead that Seneca is to pay Arctic the $46,200 due on the note on December 31, 2022. Prepare the journal entry for Arctic to record the sale on January 1, 2021. 4. Assume instead that Arctic does not view the time value of money component of this arrangement to be significant, and that the note indicates that Seneca is to pay Arctic the $46,200 due on the note on December 31, 2021. Prepare the journal entry for Arctic to record the sale on January 1, 2021. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field. Round your final answers to the nearest whole dollar amount.) Answer is not complete. No Date General Journal Debit Credit 42,385 January 01, 2021 Accounts receivable Sales revenue 42,385 December 31, 202 Cash 48,200 42.385 X Accounts receivable Interest revenue 3.815 3 January 01, 2021 Accounts receivable 38,888 Sales revenue 38,888 January 01, 2021 Accounts receivable 46,200 | Sales revenue 46,200
