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Ainat [17]
3 years ago
12

On December 31, 2020, Cullumber Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and C

ullumber Co. agreed to accept a $298,600 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Cullumber is much more creditworthy and has various lines of credit at 6%.1) Prepare the journal entry to record the transaction of December 31, 2020, for the Cullumber Co.2) Assuming Cullumber Co.’s fiscal year-end is December 31, prepare the journal entry for December 31, 2021.3) Assuming Cullumber Co.’s fiscal year-end is December 31, prepare the journal entry for December 31, 2022.
Business
1 answer:
Oksi-84 [34.3K]3 years ago
6 0

Answer

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

Download xlsx
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