On December 31, 2020, Swifty Co. performed environmental consulting services for Hayduke Co. Hayduke was...
50.1K
Verified Solution
Link Copied!
Question
Accounting
On December 31, 2020, Swifty Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Swifty Co. agreed to accept a $309,400 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Swifty is much more creditworthy and has various lines of credit at 7%. (a) Prepare the journal entry to record the transaction of December 31, 2020, for the Swifty Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, eg. 5,275. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Notes Payable 309,400 Service Revenue Discount on Notes Receivable (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (c) The parts of this question must be completed in order. This part will be available when you complete the part above
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
