On December 31, 2020, Blue Co. performed environmental consulting services for Hayduke Co. Hayduke was short...

Question

Question

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

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Journal Entries
Date	Accounting titles & Explanations		Debit	Credit

31-Dec	Notes receivable		322700
	Discount on notes receivable			56005
	sales revenue			266,695

	computation of present value of note
	PV of $322700 due in 2 years at 10%
	$322700*.82645 =	266695


31-Dec	Discount on notes receivable[10%*266695]		26,670
	interest revenue			26,670


Dec-31	discount on notes receivable		29335
	interest revenue			29335
	(56005-26670 )


	Cash		322700
	notes receivable			322700

Add a comment

Answer 2

Answer #2

Journal Entries
Date	Accounting titles & Explanations		Debit	Credit

31-Dec	Notes receivable		322700
	Discount on notes receivable			56005
	Service revenue			266,695

	computation of present value of note
	PV of $322700 due in 2 years at 10%
	$322700*.82645 =	266695


31-Dec	Discount on notes receivable[10%*266695]		26,670
	interest revenue			26,670


Dec-31	discount on notes receivable		29335
	interest revenue			29335
	(56005-26670 )


	Cash		322700
	notes receivable			322700

source: Wiley

answered by: Nathan Truong

Add a comment

Answer 3

Similar Homework Help Questions

On December 31, 2020, Blue Co. performed environmental consulting services for Hayduke Co. Hayduke was short...

On December 31, 2020, Blue Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Blue Co. agreed to accept a $322,700 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%. Blue is much more creditworthy and has various lines of credit at 6%. Prepare the journal entry to record the transaction of December 31, 2020, for the Blue...
On December 31, 2015, Tamarisk Co. performed environmental consulting services for Hayduke Co. Hayduke was short...

On December 31, 2015, Tamarisk Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Tamarisk Co. agreed to accept a $262,700 zero-interest-bearing note due December 31, 2017, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Tamarisk is much more creditworthy and has various lines of credit at 6%. Assuming Tamarisk Co.’s fiscal year-end is December 31, prepare the journal entry for December 31,...
On December 31, 2015, Tamarisk Co. performed environmental consulting services for Hayduke Co. Hayduke was short...

On December 31, 2015, Tamarisk Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Tamarisk Co. agreed to accept a $262,700 zero-interest-bearing note due December 31, 2017, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Tamarisk is much more creditworthy and has various lines of credit at 6%. Assuming Tamarisk Co.’s fiscal year-end is December 31, prepare the journal entry for December 31,...

On December 31, 2015, Riverbed Co. performed environmental consulting services for Hayduke Co. Hayduke was short...

On December 31, 2015, Riverbed Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Riverbed Co. agreed to accept a $298,600 zero-interest-bearing note due December 31, 2017, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Riverbed is much more creditworthy and has various lines of credit at 6%. A) Prepare the journal entry to record the transaction of December 31, 2015, for the...
On December 31, 2015, Culver Co. performed environmental consulting services for Hayduke Co. Hayduke was short...

On December 31, 2015, Culver Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Culver Co. agreed to accept a $318,100 zero-interest-bearing note due December 31, 2017, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Culver is much more creditworthy and has various lines of credit at 5%. Prepare the journal entry to record the transaction of December 31, 2015, for the Culver...
On December 31, 2015, Swifty Co. performed environmental consulting services for Hayduke Co. Hayduke was short...

On December 31, 2015, Swifty Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Swifty Co. agreed to accept a $293,800 zero-interest-bearing note due December 31, 2017, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Swifty is much more creditworthy and has various lines of credit at 6%. Prepare the journal entry to record the transaction of December 31, 2015, for the Swifty...

On December 31, 2020, Riverbed Co. performed environmental consulting services for Hayduke Co. Hayduke was short...

On December 31, 2020, Riverbed Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Riverbed Co. agreed to accept a $264.100 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 11%. Riverbed is much more creditworthy and has various lines of credit at 6%. Prepare the journal entry to record the transaction of December 31, 2020. for the Riverbed...
?On December 31, 2015, Bonita Co. performed environmental consulting services for Hayduke Co. Hayduke was short...

?On December 31, 2015, Bonita Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Bonita Co. agreed to accept a $346,500 zero-interest-bearing note due December 31, 2017, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Bonita is much more creditworthy and has various lines of credit at 6%.
On December 31, 2020, Carla Co. performed environmental consulting services for Hayduke Co. Hayduke was short...

On December 31, 2020, Carla Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Carla Co. agreed to accept a $318,100 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 11%. Carla is much more creditworthy and has various lines of credit at 5% - Your answer is partially correct. Prepare the journal entry to record the transaction of...

On December 31, 2015, Ayayai Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash,...

On December 31, 2015, Ayayai Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Ayayai Co. agreed to accept a $252,100 zero-interest-bearing note due December 31, 2017, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Ayayai is much more creditworthy and has various lines of credit at 6%. Prepare the journal entry to record the transaction of December 31, 2015, for the Ayayai...

On December 31, 2020, Blue Co. performed environmental consulting services for Hayduke Co. Hayduke was short...

Homework Answers