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Problems 8-48 & 8-49

Rparhould be presented on the 2020 income statement an all entries for Welsch related to the what should be presented on the 2020 income statement and balance s above transactions, including any year-end adjustments. heet. 2020, Swimm Company sold merchandise to Customer Lochte and receiv ar, noninterest-bearing note. Th Exercise 8-48 Recording and Reporting with Short-Term Interest-Bearing Note Receivable LO5 ed a $26,400 (face amount),c ends on December 31. Customer Lochte paid the note in full on its maturity e market rate of interest is 10%. The Transa cumpany euirae all entries for Swimm Company related to the above transactions, including an annual reporting period for Swimm is. Amortize the discount on the note receivable using the straight-line method. Hin e method, we amortize the discount equally over the 12-months. what should be presented on the 2020 income statement and balance sheet. Under the straight- 1, 2020, Jacobs Company sells land financed t te is a $40,000, 8%, annual interest bearing note. Andres On January I hrough a $40,000 note, issued by Andress Company. s agrees to repay the $40,000 proceeds on De. e land is equal Exercise 8-49 Recording Entries 31, 2021. The prevailing interest rate on similar notes is l 1%. Assume that the cost of th to the selling price. Required Prepare all method to amortize the discount. for Long-Term Note Recevable: Effective-Interest Amortization LO5 l entries for Jacobs over the note term, including any year-end adjustments. Use the effective-intere 0n July 1, 2020, Stealth Company sold a machine that had a lie

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