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11. On January 1, 2020, Jones Services receives a zero-interest note with a matu $10,000 and a three year maturity from Maclum Inc. for services performed. The normal rate of interest Jones Services receives on similar notes is 10%. An excerpt from a present value table is show below: a. Prepare the journal entry at receipt of the note receivable on January 1, 2020.

11. On January 1, 2020, Jones Services receives a zero-interest note with a matu $10,000 and a three year maturity from Maclum Inc. for services performed. The normal rate of interest Jones Services receives on similar notes is 10%. An excerpt from a present value table is show below: a. Prepare the journal entry at receipt of the note receivable on January 1, 2020.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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11. On January 1, 2020, Jones Services receives a zero-interest note with a maturity value of $10,000 and a three year maturity from Maclum Inc. for services performed. The normal rate of interest Jones Services receives on similar notes is 10%. An excerpt from a present value table is show below: a. Prepare the journal entry at receipt of the note receivable on January 1, 2020. Present Value Factors: Period 1 2 3 4 5 5% .952 .907 .864 .823 10% 15% .909 .870 .826 .756 .751 .658 .683 572 .784 .621 .497
Transcribed Image Text:11. On January 1, 2020, Jones Services receives a zero-interest note with a maturity value of $10,000 and a three year maturity from Maclum Inc. for services performed. The normal rate of interest Jones Services receives on similar notes is 10%. An excerpt from a present value table is show below: a. Prepare the journal entry at receipt of the note receivable on January 1, 2020. Present Value Factors: Period 1 2 3 4 5 5% .952 .907 .864 .823 10% 15% .909 .870 .826 .756 .751 .658 .683 572 .784 .621 .497
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