On April 1, 20X1, Wolfpack Corp. sold inventory and received a $9,000, 12-month, 12% note in exchange

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Question:

On April 1, 20X1, Wolfpack Corp. sold inventory and received a $9,000, 12-month, 12% note in exchange for services provided to a customer.

The note's face value plus interest will be due when the note matures on April 1, 20X2.

Required:

Prepare the following journal entries related to this note.

The entry to record the issuance of the note on April 1, 20X1

The entry to record the accrual of interest on December 31, 20X1, and

The entry to record the collection of the note and interest on April 1, 20X2.

Related Book For answer-question

Introduction to Management Accounting

ISBN: 978-0133058789

16th edition

Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta

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Posted Date: Apr 15, 2023 08:07 AM

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On April 1, 20X1, Wolfpack Corp. sold inventory and received a $9,000, 12-month, 12% note in exchange

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The entry to record the issuance of the note on April 1 20X1 Cash 9000 Notes Receivable 9000 ... View the full answer

Introduction to Management Accounting

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