Aero Acrobats lent $47,573 to Afterburner Limited, accepting Afterburner's $49,000, three-month, zero interest-bearing notes. The implied interest is approximately 12%. Prepare Aero’s; journal entries for the initial transaction and the collection of $49,000 at maturity.
Answer to relevant QuestionsLin Du Corp. lent $30,053 to Prefax Ltd., accepting Prefax's $40,000, three-year, zero-interest-bearing note. The implied interest is 10%. (a) Prepare Lin Du’s; journal entries for the initial transaction, recognition of ...Use the information for Landstalker Enterprises in BE7-18 and assume instead that the receivables are sold with recourse. Prepare the journal entry for Landstalker to record the sale, assuming the recourse obligation has a ...Stowe Enterprises owns the following assets at December 31, 2014: If Stowe follows ASPE, what amount should be reported as cash and cash equivalents? Explain how your answer would differ if Stowe followed IFRS. The chief accountant for Dickinson Corporation provides you with the following list of accounts receivable that were written off in the current year: Dickinson Corporation follows the policy of debiting Bad Debt Expense as ...Chessman Corporation factors $600,000 of accounts receivable with Liquidity Financing, Inc. on a with recourse basis. Liquidity Financing will collect the receivables. The receivable records are transferred to Liquidity ...
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