Question: On December 31 2008 Sea Containers Ltd a company located

On December 31, 2008, Sea Containers Ltd., a company located in Hamilton, Bermuda, reported notes receivable of $63,930,000. This amount represents the present value of future cash flows (both principal and interest) discounted at a rate of 11.12% per annum. The schedule of collections of the receivables is provided next:

Assume that the interest due is paid along with the face value of the receivables at the end of each year.

Provide journal entries to record the interest received and the notes receivable collected in eachyear.

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  • CreatedSeptember 10, 2014
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