Homework Answers
| PV Factor | PV | ||
| Interest Payment | $ 3,600 | 1.8334 | $ 6,600 |
| Principal | $ 72,000 | 0.8900 | $ 64,080 |
| $ 70,680 |
| Date | Account Titles | Debit | Credit | |
| Jan 1, 2020 | Notes Receivable | $ 72,000 | ||
| Discount on Notes Receivable | $ 1,320 | |||
| Land | $ 70,680 | |||
| Dec 31, 2020 | Cash | $ 3,600 | ||
| Discount on Notes Receivable | $ 641 | =4241-3600 | ||
| Interest Revenue | $ 4,241 | =70680*6% | ||
| Dec 31, 2021 | Cash | $ 3,600 | ||
| Discount on Notes Receivable | $ 679 | =4279-3600 | ||
| Interest Revenue | $ 4,279 | =(70680+641)*6% | ||
| Dec 31, 2021 | Cash | $ 72,000 | ||
| Notes Receivable | $ 72,000 |
Please do not mark thumbs down in case of rounding off
error.
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cCan someone let me know if this is
correct?
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Prepare the journal entries, including any interest earned, that
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Note: Round your answers to the nearest whole
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a. February 1, 2020—Received a $520,000, 9%, interest-bearing,
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. INILUTY LULU ILIVU T...
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