Dharma sold a piece of equipment at the beginning of Year 1, receiving a $ 10,000, two-
Question:
Dharma sold a piece of equipment at the beginning of Year 1, receiving a $ 10,000, two- year 1% note. Interest is paid at the end of each year. Market interest rates are in the range of 10%.
Required:
1. Calculate the present value of the note receivable.
2. Prepare entries for the sale, and cash collection each year for two years.
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Requirement 1 Present value of principal 10000 PF 10 2 8265 Pr...View the full answer
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Related Book For
Intermediate Accounting
ISBN: 978-0071339476
Volume 1, 6th Edition
Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I
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