Question

View Policies Current Attempt in Progress On January 1, 2017. Flint Co. borrowed and received $507.000 from a major customer evidenced by a zero interest-bearing note due in 4 years. As consideration for the zero interest bearing feature. Flint agrees to supply the customer's inventory needs for the loan period at lower than the market price. The appropriate rate at which to imple interest is 9%. (a) Prepare the journal entry to record the initial transaction on January 1, 2017 (b) Prepare the journal entry to record any adjusting entries needed at December 31, 2017. Assume that the sales of Flints product to this customer occur evenly over the 4-year period (Round present value factor calculations to 5 decimal places 1.25124 and the final answer to decimal places es 58.971.ine entry is required, select "No Entry for the account titles and enter for the amounts Credit accounties are automatically indented when amount is entered. Do not indent manually No. Date Account Titles and Explanation (a) January 1, 2017 b) December 31, 2017 (to record interest Expense) December 31, 2017 (To record Unearned Sales Revenue) e Textbook and Media

Answer 1

Thank you

Ams oldet Date Account title & Explanation Cash san-1- 2017 Debit $ 507000 $ 147826 $ 507000 $147826 Discount on notes Payable notes payable Unearned sales revenue to record amount borrowed) 567000 - 57000X PUFCQ7,4) Sotouo - 507000X 0.70843 Dec-31 $ 32326 2017 $ 32326 Interest Expense Discount on notes Payable to record interest Expense) (S07oo - 147826) X9% bec-31 $36957 2012 unqasred sales revenue sales devenue (to zcood sales delenue) ( 147826) $36957

I hope you understand