Question: Question 1 On September 1, Year 1, Beta Ltd. provided services to Alpha Inc. In payment, Beta accepted $8,000 cash and agreed to receive the

Question 1

On September 1, Year 1, Beta Ltd. provided services to Alpha Inc. In payment, Beta accepted $8,000 cash and agreed to receive the balance in four equal installments of $10,000 that are due each August 31st. An interest rate of 4% is applicable. Betas year end is December 31st and reports using IFRS. Required: Prepare the required journal entries for the fiscal Year 1 and Year 2 (round to nearest dollar)

Question 2

Alpha factors (transfers/sells) some accounts receivable at the end of the year and receives cash. Accounts totaling $275,000 are transferred to First Factors Inc., with recourse. First Factors retains, as a deposit, 3% of the balances and assessed a finance charge of 4% on the transfer. First Factors will collect the receivables from Alphas customers. The fair value of the recourse obligation is $4,850. Required: Prepare the required journal entry(ies) for Alpha.

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