On December 31, 2017, Carla Vista Co. sold equipment to Tamarisk, Inc. Carla Vista Co. agreed to accept a $430,000 zero-interest-bearing note due December 31, 2019, as payment in full. Tamarisk, Inc. incorporated in 2017 and had very little credit history at the time of the transaction with Carla Vista. Therefore, at that time, Tamarisk typically borrowed funds at a rate of 8%. Carla Vista has a long and positive credit history. Therefore, Carla Vista has various lines of credit at 4%.

Prepare the journal entry to record the transaction of December 31, 2017, for Carla Vista Co.

Account Titles and Explanation	Debit	Credit

Assuming Carla Vista Co.’s fiscal year-end is December 31, prepare the journal entry for December 31, 2018. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit

Assuming Carla Vista Co.’s fiscal-year end is December 31, prepare the journal entries for December 31, 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit

Answer rating: 100% (QA)

Solution Maturity Value of Zero Interest Bearing Notes Receivable 310000 Present Value of Notes Rece... View the full answer