ANSWER: Complete the following amortization schedule: Cash Interest Amortized Carrying Dates Received Income Amount Amount Jan 1, 2022 0 0 0 $ Jul 1, 2022 $ $ $ $ Jan 1, 2023 " " $ $ $ Jul 1, 2023 " " $ $ $ Jan 1, 2024 " " $ $ $
ANSWER: Complete the following amortization schedule: Cash Interest Amortized Carrying Dates Received Income Amount Amount Jan 1, 2022 0 0 0 $ Jul 1, 2022 $ $ $ $ Jan 1, 2023 " " $ $ $ Jul 1, 2023 " " $ $ $ Jan 1, 2024 " " $ $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On 1 January 2022, Rodney Inc. provided services to Smith Co. in exchange for Smith’s $300,000, 2-year 8% note with interest compounded semi-annually on July 1 and January 1. The current market rate of similar notes is 12%. Rodney Inc. financial year ends December 31.
ANSWER:
Complete the following amortization schedule:
| Cash | Interest | Amortized | Carrying | |
| Dates | Received | Income | Amount | Amount |
| Jan 1, 2022 | 0 | 0 | 0 | $ |
| Jul 1, 2022 | $ | $ | $ | $ |
| Jan 1, 2023 | " " | $ | $ | $ |
| Jul 1, 2023 | " " | $ | $ | $ |
| Jan 1, 2024 | " " | $ | $ | $ |
2. Prepare the necessary
| Jan 1, 2022: | ||
| Dr. Answer | $ | |
| Cr. Answer | $ | |
| Dec 31, 2022: | ||
| Dr. Answer | $ | |
| Dr. Notes receivable | $ | |
| Cr. Answer | $ | |
| Jan 1, 2023: | ||
| Dr. Answer | $ | |
| Cr. Answer | $ |
$
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