On 1/1/11 your client received a 12 year note for $170,000 in exchange for the services...

Transcribed Image Text:

On 1/1/11 your client received a 12 year note for $170,000 in exchange for the services that your client rendered. The note calls for an annual payment of interest on 12/31 at a contractual (stated) rate of 4%. Given the credit standing of the customer, an interest rate of 12% has been imputed as the effective rate. The principal amount of the note is due at maturity. Please provide journal entries on 1/1/11. 1)__ Blank # 1 Blank # 2 Blank # 3 Blank # 4 Blank # 5 Blank # 6 3) 5) N A P P $2), $4)___ $6) On 1/1/11 your client received a 12 year note for $170,000 in exchange for the services that your client rendered. The note calls for an annual payment of interest on 12/31 at a contractual (stated) rate of 4%. Given the credit standing of the customer, an interest rate of 12% has been imputed as the effective rate. The principal amount of the note is due at maturity. Please provide journal entries on 1/1/11. 1)__ Blank # 1 Blank # 2 Blank # 3 Blank # 4 Blank # 5 Blank # 6 3) 5) N A P P $2), $4)___ $6)

Answer rating: 100% (QA)

Debit Notes Receivable 170000 Credit Revenue 170000 for ser... View the full answer