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3 years ago

On July 1, 2020, Riverbed Inc. made two sales.

Business

1 answer:

V125BC [204]3 years ago

8 0

Answer:

Riverbed Inc.

Journal Entries:

1. Debit 0% 4-year Promissory Notes Receivable $1,435,565

Credit Land $597,200

Credit Gain on Sale of Land $315,130

Credit Interest Revenue $523,235

To record the sale of land in exchange for a note with face value of $1,435,565

2. Debit 3% 8-year Promissory Note Receivable $401,660

Credit Service Revenue $162,224

Credit Interest Revenue $239,436

To record the rendering of service in exchange for a note with face value of $401,660.

Explanation:

a) Data and Analysis:

July 1, 2020:

1. 0% 4-year Promissory Notes Receivable $1,435,565 Land $597,200 Gain on Sale of Land $315,130 Interest Revenue $523,235

From an online financial calculator, the PV and Interest:

N (# of periods) 4

I/Y (Interest per year) 12

PMT (Periodic Payment) 0

FV (Future Value) 1435565

Results

PV = $912,330

Total Interest $523,235

Gain on Sale of Land:

Fair value of the land = $912,330

Book value of the land 597,200

Gain on sale of land = $315,130

2. 3% 8-year Promissory Note Receivable $401,660 Service Revenue $162,224 Interest Revenue $239,436

From an online financial calculator, the PV and Interest:

N (# of periods) 8

I/Y (Interest per year) 12

PMT (Periodic Payment) 0

FV (Future Value) 401660

Results

PV = $162,224

Total Interest $239,436

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3 years ago

What are the shortcomings or national incom acconting system?

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2 years ago

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Answer:

Combination of products shall be:

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Explanation:

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4 years ago

Which control standard is stated most effectively?

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<h3>What is meant by the term control standard?</h3>

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1 year ago

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