Frenchie, Inc., a truck dealership, sells a truck costing $15,000 to Overvalued Company on January 1, 2009,

Question:

Frenchie, Inc., a truck dealership, sells a truck costing $15,000 to Overvalued Company on January 1, 2009, in exchange for a $30,000 note bearing 12 percent interest.

Required:

1. Prepare the journal entry to record the sale on January 1, 2009.

2. Determine how much interest Frenchie will receive if the note is repaid on December 31, 2009.

3. Prepare Frenchie's journal entry to record the cash received to pay off the note and interest on December 31, 2009.

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Cornerstones of Financial and Managerial Accounting

ISBN: 978-0324787351

1st Edition

Authors: Rich Jones, Mowen, Hansen, Heitger

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Question Posted: Jul 23, 2012 03:00 AM

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Frenchie, Inc., a truck dealership, sells a truck costing $15,000 to Overvalued Company on January 1, 2009,

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1 Notes Receivable 30000 Sales Revenue 3...View the full answer

Cornerstones of Financial and Managerial Accounting

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