On Jan 1, 2016, Zahid sold a truck to Othaim in exchange for a $200,000, 6% (payable
Fantastic news! We've Found the answer you've been seeking!
Question:
On Jan 1, 2016, Zahid sold a truck to Othaim in exchange for a $200,000, 6% (payable annually), 5 year, notes payable. On Jan 1, 2016, the market rate was 8%.
Date | Cash Received | Int. Revenue | Pre Amrt. | Carrying Value |
1-Jan-16 | | | | |
1-Jan-17 | | | | |
1-Jan-18 | | | | |
1-Jan-19 | | | | |
1-Jan-20 | | | | |
1-Jan-21 | | | | |
Requirements: | ||
(1) | What is the sale revenue that Zaid should recognize on Jan 1, 2016? | |
(2) | What is the interest revenue that Zaid should recognize on Dec 31, 2016? | |
(3) | What is the Pre Amrt. that Zaid should recognize on Dec 31, 2018? | |
(4) | What is the carrying value of the notes on Dec 31, 2019? | |
(5) | What is the interest receivable related to the notes on Dec 31, 2020? | |
Related Book For
Intermediate Accounting 2014 FASB Update
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date: