Question: Problem 5-8A Record long-term notes receivable and interest revenue (LO5-7) On December 1, 2021, Liang Chemical provides services to a customer for $90,000. In payment

December 1, 2021, Liang Chemical provides services to a customer for $90,000.

In payment for the services, the customer signs a three-year 10% note.

The face amount is due at the end of the third year,

while annual interest is due each December 1. Required: 1. Record the

acceptance of the note on December 1, 2021 2. Record the interest

collected of December 1 for 2022 and 2023, and the adjustment for

Problem 5-8A Record long-term notes receivable and interest revenue (LO5-7) On December 1, 2021, Liang Chemical provides services to a customer for $90,000. In payment for the services, the customer signs a three-year 10% note. The face amount is due at the end of the third year, while annual interest is due each December 1. Required: 1. Record the acceptance of the note on December 1, 2021 2. Record the interest collected of December 1 for 2022 and 2023, and the adjustment for interest revenue on December 31 for 2021, 2022, and 2023. 3. Record the cash collection on December 1, 2024 Prepare the journal entries for the above transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the adjusting entry for interest receivable as of December 31, 2021. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2021 Journal entry worksheet Record the receipt of annual interest as of December 01, 2023. Note: Enter debits before credits. General Journal Debit Credit Date December 01, 2023 Journal entry worksheet Record the cash collection. Note: Enter debits before credits. General Journal Date December 01, 2024 Debit Credit

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!

Sweeter Enterprises Inc. has cash flows from operating activities of $539,000. Cash flows used for investments in property, plant, and equipment totaled $210,000, of which 75% of this investment was...

Problem 5-8B Record long-term notes receivable and interest revenue (LO5-7) On April 15, 2021, Sampson Consulting provides services to a customer for $92,000. To pay for the services, the customer...

Create the 7 journal entries relevant to each transaction. Thank you! Problem 5-8B Record long-term notes receivable and interest revenue (LO5-7) On April 15, 2021, Sampson Consulting provides...

Problem 5-8B Record long-term notes receivable and interest revenue (LO5-7) On April 15, 2021, Sampson Consulting provides services to a customer for $104,000. To pay for the services, the customer...

Problem 5-8B Record long-term notes receivable and interest revenue (LO5-7) On April 15, 2021, Sampson Consulting provides services to a customer for $97,000. To pay for the services, the customer...

Problem 5-8B Record long-term notes receivable and interest revenue (LO5-7) On April 15, 2021, Sampson Consulting provides services to a customer for $93,000. To pay for the services, the customer...

Problem 5-8B Record long-term notes receivable and interest revenue (LO5-7) On April 15, 2021, Sampson Consulting provides services to a customer for $110,000. To pay for the services, the customer...

Problem 5-8B Record long-term notes receivable and interest revenue (L05-7) On April 15, 2021. Sampson Consulting provides services to a customer for 5101,000. To pay for the services, the customer...

18 Problem 5-8A Record long-term notes receivable and interest revenue (LO5-7) 0.41 points On December 1, 2021, Liang Chemical provides services to a customer for $90,000. In payment for the...

On December 1, 2021, Liang Chemical provides services to a customer for $72,000. In payment for the services, the customer signs a three-year, 12% note. The face amount is due at the end of the third...

Some people feel that all employee news, good or bad, should be announced directly. Do you agree or disagree? Why?

We discussed in the text the basic externality problem that we face when we rely on private giving to public projects. In this exercise, we consider how this changes as the number of people involved...

Opto Co . is publicly traded, consolidated entity reporting segment information. Which of the following Bems is a required entigy wide disclosure reporting eitermal eustamert? A . The fact that...

Hypothesis Testing of a Single Mean LCTCS Tuition: Louisiana Community And Technical College System consist of 2 community colleges across the state. I think RPCC's tuition and fees is lower than the...

As stated in the case, Therese strongly believes that the changes she was seeking for women in the workplace, were the dual responsibility of organizations and women themselves. Critically evaluate...

1-2 What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems...

1-3 What academic disciplines are used to study information systems, and how does each contribute to an understanding of information systems?