Question: On June 1 , 2 0 2 4 , Johnson & Sons sold equipment to James Landscaping Service in exchange for a zero - interest

On June 1,2024, Johnson & Sons sold equipment to James Landscaping Service in exchange for a zero-interest bearing note with a face value of $110,000, with payment due in 12 months. The fair value of the equipment on the date of sale was $100,000. The amount of revenue to be recognized on this transaction in 2024 is
a. $110,000.
b. $10,000
c. $100,000
d. $100,000 sales revenue and $5,833 interest revenue.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

On June 1 , 2 0 1 8 , Johnson & Sons sold equipment to James Landscaping Service in exchange for a zero - interest bearing note with a face value of 1 1 0 , 0 0 0 , with payment due in 1 2 months....

Q:

On June 1 , 2 0 2 4 , Johnson & Sons sold equipment to James Landscaping Service in exchange for a zero - interest bearing note with a face value of $ 1 1 0 , 0 0 0 , with payment due in 1 2 months....

Q:

1 . On June 1 , 2 0 2 4 , Johnson & Sons sold equipment to James Landscaping Service in exchange for a zero - interest bearing note with a face value of $ 1 1 0 , 0 0 0 , with payment due in 1 2...

Q:

On January 1 , 2 0 2 5 , Waterway Co . sold equipment in exchange for an $ 8 2 0 0 0 0 zero - interest - bearing note due on January 1 , 2 0 1 8 . The prevailing rare of interest for anote of this...

Q:

2: Zero Interest Bearing Note Jessica Jackson Corporation acquires machinery from South Company in exchange for a $20,000 non-interest bearing, 5-year note on June 30, 2013. The note is due on June...

Q:

2: Zero Interest Bearing Note Jessica Jackson Corporation acquires machinery from South Company in exchange for a $20,000 non-interest bearing, 5-year note on June 30, 2013. The note is due on June...

Q:

Case Study 2 - Alharam Company sells Alumtal doors and windows. In addition providing accessories, installation and maintenance services. Alharam Company performed the following revenue transactions...

Q:

Exercise 10-3 Novak Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2017. The terms of acquisition for each...

Q:

I wana the answer of the case study Case Study - Model B - Alharam Company sells Alumtal doors and windows. In addition providing accessories, installation and maintenance services. Alharam Company...

Q:

please can i het help with this with shown workings? 5 50 points possible: Perform all tasks as required below, l...cell referencing to original data, use of Excel Present Value formula for truck #2,...

Q:

Let E = Qn[-1, 1] be a subset of R. Is E a Jordan region? Prove.

Q:

Calculate the following ratios for the firm for 20 2 2: Current, Quick, Cash, Debt, Equity Multiplied, Cash Coverage, inventory turnover, Days Sales in Inventory, Rec Turnover, Days Sales Out, Total...

Q:

The consultants purchased a building for 5 4 0 , 0 0 0 and depreciated it on straight line basis over 4 0 year period On January 2 , 2 0 2 4 quality clothing consignment purchase showroom fixtures...

Q:

Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for Christmas and everyone else Christmas cards. Hugo is willing to pay up...