ssignment CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT R

ssignment CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT RCES Problem 7-7 On October 1, 2017, Bridgeport Equipment Company sold a pecan-harvesting machine to valco Brothers Farm, Inc. In lieu of a cash payment Valco Brothers Farm gave Arden a 2- year, $169,200, 8% note a realistic rate of interest for a note of this type). The note required interest to be paid annually on october 1 Bridgeport\'s f nancial statements are prepared on a calendar-year basis. hers Farm fufill allthe terns of the note, prepare the necessary lournal entries fot erdgeort Exuioment oa ta th em of the iha t Company for the entire term of the note. Assume that reversing entries are not made on January 1, 2018 and January 1, 2019. (Record Entry\" for the account titles and enter 0 for the amounts. Credit account titles are automatically i journal entries in the order present indented when the amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit Study erson 424.7.2 ment 1 Privacy Policy I &Sons; Ins All Rights Reserved, A Drvision of arch

Solution

Journal entries: Date Accounts title and explanation Debit $ Credit $ Oct 1 2017 Notes receivable Account Dr. 169200      Sales revenue 169200 Dec 31 2017 Interest receivable account Dr. 3384       Interest revenue Account (169200*8%*3/12) 3384 Oct 12018 Cash Account Dr. 13536      Interest revenue (169200*8%*9/12) 10152      Interest rececivable Account 3384 Dec31 2018 Interest receivable account Dr. 3384       Interest revenue Account (169200*8%*3/12) 3384 Oct 1 2019 Cash Account Dr. 13536      Interest revenue (169200*8%*9/12) 10152      Interest rececivable Account 3384 Oct 12019 Cash Account Dr. 169200        Notes receivable Account 169200