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weeeeeb [17]
2 years ago
15

On December 31, 2015, Sarasota Co. performed environmental consulting services for Hayden Co. Hayden was short of cash, and Sara

sota Co. agreed to accept a $160,000 zero-interest-bearing note due December 31, 2017, as payment in full. Hayden is somewhat of a credit risk and typically borrows funds at a rate of 11%. Sarasota is much more creditworthy and has various lines of credit at 6%. Required:
a. Prepare the journal entry to record the transaction of December 31, 2015, for Tran Co. b. Assuming Tran Co.'s fiscal year-end is December 31, prepare the journal entry for December 31, 2016. c. Assuming Tran Co.'s fiscal year-end is December 31, prepare the journal entry for December 31, 2017.
Business
1 answer:
Liono4ka [1.6K]2 years ago
7 0

The appropriate journal entry to record the transaction of December 31, 2015, for Tran Co. is: Debit Notes receivable $129,859.2;Credit Service revenue $129,859.2.

<h3>Journal entries</h3>

(a) December 31, 2015

Debit Notes receivable $129,859.2

($160,000 x 0.81162)

Credit Service revenue   $129,859.2

(PV of $160,000 due in 2 years at 11%)  

(b) December 31, 2016

Debit Notes receivable $14,284.5

($129,859.2 x 11%)

Credit Interest revenue   $14,284.5

(c)  December 31, 2017

Debit Discount on notes receivable   $44,425

[$160,000 - ( $129,859.2-  $14,284.5)]

Credit Interest revenue  $44,425

Debit Cash $160,000

Credit Notes receivable $160,000

Inconclusion the journal entry to record the transaction of December 31, 2015, for Tran Co. is: Debit Notes receivable $129,859.2;Credit Service revenue $129,859.2.

Learn more about journal entry here:brainly.com/question/14279491

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When a person is authorized by the principal to transact all affairs in connection with a particular type of business or trade o
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General agent

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An individual retirement account, or IRA, earns tax-deferred interest and allows the owner to invest up to $5000 each year. Joe
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Answer:

Instructions are below.

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Giving the following information:

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To calculate the final value of Jill and Joe, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= weekly/annual deposit

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<u>Joe:</u>

FV= {5,000*[(1.098^30)-1]} / 0.098

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