Cambria Limited took a $200,000 two-year note receivable from a customer In connection with a major...

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Cambria Limited took a $200,000 two-year note receivable from a customer In connection with a major Inventory sale transaction on 1 January 20X5. The note required annual end-of-year Interest payments of 4%, and the principal was due at the end of 20X6. 3. Prepare journal entries to record the initlal sale transaction and each payment on the books of Cambria, consistent with requirement 2. Use the gross method to record the note. (If no entry is required for a transaction/event, select "No Journal entry required" In the first account fleld. Round time value factor to 5 decimal places and final answers to the nearest whole dollar amount.) (PV of $1, PVA of $1, and PVAD of $1) (Use approprlate factor(s) from the tables provided.) O Answer is not complete. Requlred: 1. Prepare journal entries to record the initial sale transaction and each payment on the books of Cambria, assuming that the market interest rate is 4%. (If no entry Is required for a transaction/event, select "No Journal entry required" In the first account fleld. Round time value factor to 5 decimal places and final answers to the nearest whole dollar amount.) No Date General Journal Debit Credit 1 1 January 20X5 Notes receivable 200,000 Discount on note receivable 14,266 Answer is not complete. Sales revenue 185,734 No Date General Journal Debit Credit 2 31 December 20X Cash 8,000 1 1 January 20X5 Notes receivable 200,000 Discount on note receivable 6,859 Sales revenue 200,000 Interest revenue 14,859 2 31 December 20X5 Cash 8,000 31 December 20X Cash 200,000 X 3 Interest revenue 8,000 Notes receivable 200,000 3 31 December 20X6 Cash 200,000 X 4. Not available in connect. Notes receivable 200,000 2. Assume now that the market interest rate is 8%. Calculate the present value of the note, and prepare a schedule that shows the annual Interest. (Round time value factor to 5 decimal places and final answers to the nearest whole dollar amount. Enter all answers in posltive.) 5. Prepare journal entries to record the initial sale transaction and each payment on the books of the customer who bought Inventory and owes the note, consistent with requirement 2. (If no entry Is requlred for a transactlon/event, select "No Journal entry required" In the first account fleld. Round time value factor to 5 decimal places and final answers to the nearest whole dollar amount.) Answer is complete and correct. Present value 185,734 Answer is not complete. No Date General Journal Debit Credit 1 1 January 20X5 Inventory 185,734 Notes payable 185,734 31 December 20X Interest expense 14,859 8 Answer is complete but not entirely correct. Cash 8,000 Notes payable 6,859 Opening Net Liability/ Receivable Closing Net Interest Interest Discount Paid/ Received Expense/Revenue Amortization Liability/ Receivable 31 December 20ox Interest expense 15,407 Cash 8,000 8,000 X s 8,000 X 14,859 X S 15,407 X 185,734 6,859 $ 192,593 Notes payable 7,407 S 192,593 7,407 200,000 3. Cambria Limited took a $200,000 two-year note receivable from a customer In connection with a major Inventory sale transaction on 1 January 20X5. The note required annual end-of-year Interest payments of 4%, and the principal was due at the end of 20X6. 3. Prepare journal entries to record the initlal sale transaction and each payment on the books of Cambria, consistent with requirement 2. Use the gross method to record the note. (If no entry is required for a transaction/event, select "No Journal entry required" In the first account fleld. Round time value factor to 5 decimal places and final answers to the nearest whole dollar amount.) (PV of $1, PVA of $1, and PVAD of $1) (Use approprlate factor(s) from the tables provided.) O Answer is not complete. Requlred: 1. Prepare journal entries to record the initial sale transaction and each payment on the books of Cambria, assuming that the market interest rate is 4%. (If no entry Is required for a transaction/event, select "No Journal entry required" In the first account fleld. Round time value factor to 5 decimal places and final answers to the nearest whole dollar amount.) No Date General Journal Debit Credit 1 1 January 20X5 Notes receivable 200,000 Discount on note receivable 14,266 Answer is not complete. Sales revenue 185,734 No Date General Journal Debit Credit 2 31 December 20X Cash 8,000 1 1 January 20X5 Notes receivable 200,000 Discount on note receivable 6,859 Sales revenue 200,000 Interest revenue 14,859 2 31 December 20X5 Cash 8,000 31 December 20X Cash 200,000 X 3 Interest revenue 8,000 Notes receivable 200,000 3 31 December 20X6 Cash 200,000 X 4. Not available in connect. Notes receivable 200,000 2. Assume now that the market interest rate is 8%. Calculate the present value of the note, and prepare a schedule that shows the annual Interest. (Round time value factor to 5 decimal places and final answers to the nearest whole dollar amount. Enter all answers in posltive.) 5. Prepare journal entries to record the initial sale transaction and each payment on the books of the customer who bought Inventory and owes the note, consistent with requirement 2. (If no entry Is requlred for a transactlon/event, select "No Journal entry required" In the first account fleld. Round time value factor to 5 decimal places and final answers to the nearest whole dollar amount.) Answer is complete and correct. Present value 185,734 Answer is not complete. No Date General Journal Debit Credit 1 1 January 20X5 Inventory 185,734 Notes payable 185,734 31 December 20X Interest expense 14,859 8 Answer is complete but not entirely correct. Cash 8,000 Notes payable 6,859 Opening Net Liability/ Receivable Closing Net Interest Interest Discount Paid/ Received Expense/Revenue Amortization Liability/ Receivable 31 December 20ox Interest expense 15,407 Cash 8,000 8,000 X s 8,000 X 14,859 X S 15,407 X 185,734 6,859 $ 192,593 Notes payable 7,407 S 192,593 7,407 200,000 3.

Answer rating: 100% (QA)

Requirement 1 When the market interest rate is equal to the interest rate ... View the full answer