On June 1, 2014,Johnson & Sons sold equipment to James Landscaping Services. In exchange for...
50.1K
Verified Solution
Link Copied!
Question
Accounting
On June 1, 2014,Johnson & Sons sold equipment to James Landscaping Services. In exchange for a zero-interest bearing note with a face value of $55,000, with payment due in 12 months.The fair value of the equipment on the date of sale was $50,000.The amount of revenue to be recognized on this transaction in 2014 is
a. $55,000.
b. $5,000
c. $50,000
d. $50,000 sales revenue and $2,917interest revenue.
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: Flex AI - Your personal assistant for all your inquiries!
