By December 3 1 , 2 0 2 0 , PEI Potato Corp. had performed a significant
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Question:
By December PEI Potato Corp. had performed a significant amount of environmental consulting services for Spud Ltd Spud was short of cash, and PEI Potato agreed to accept a $ noninterestbearing note due December as payment in full. Spud is a bit of a credit risk and typically borrows funds at a rate of PEI Potato is much more creditworthy and has various lines of credit at PEO Potato Corp. reports under IFRS.
Required
Prepare the journal entry to record the transaction on December for PEI Potato Corp.
Assuming PEI Potato's fiscal year end is December prepare the journal entry required at December
Assuming PEI Potato's fiscal year end is December prepare the journal entry required at December
What are the amount and classification of the note on PEI Potato Corp.s SFP as at December
Assume instead that PEI Potato reports under ASPE and uses the straightline method to amortize the discount on the note. What would the interest income be relating to the note for and
If an appropriate market rate of interest for the note receivable is not known, how should the transaction be valued and recorded on December
Related Book For
Intermediate Accounting
ISBN: 978-1119048534
11th Canadian edition Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
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