On January 1, 2019, Will, Inc. rendered services to ABC Co. in exchange for a $378,000, 5 year note. The terms of the agreement require ABC to make semi-annual installment payments of P&I with the first installment due July 1^st.  An annual interest rate of 8% is imputed.  Each payment is to be received on July 1 and Jan 1. Will’s year end is December 31^st.

Required:

1. What amount of Service Revenue can Will record on January 1, 2019?

$_________________________

Using the information presented in #9 above, what amount of interest revenue should be recognized on this note for the year ending Dec 31, 2020?

Using the information in #9 above, determine the Carrying Value of the note Receivable at December 31, 2020

Answer rating: 100% (QA)

To determine the amount of Service Revenue that Will can record on January 1 2019 we need to calculate the present value of the note using the imputed ... View the full answer