Question

Calculator wides cleaning services for Clinton Inc., a business with four buildings. Kelsey's assigned different cleaning charges for each building based on the ar arges for the four buildings are $35,000, $27,000, $45,000, and $10,000. Clinton secured this amount by signing a note bearing 7% interest on Ma al entry to record the sale on March 1, 2019. able x 117,819 X 117,819 X be recognized when earned, even if the customer has not paid, as long as collectability is reasonably assured much interest Kelsey will receive if the note is repaid on December 1, 2019. Round your answer to two decimal places. lating interest, consider the principal, the annual interest rate and the duration of the note Previou

please help

Answer 1

a)

Date	Account title	Debit	credit
1 March 2019	7% Note receivable	117000
	sales revenue / cleaning service revenue		117000
	[being cleaning services provided]

Total revenue = 35000+27000+45000+10000=117000

b)

If note is repaid on December 1 then interest is accrued for 9 months (1March - 1Dec )

Interest = Total amount of note *interest rate * n/12

                = 117000 * 7% *9/12= 6142.50