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Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles. The snowmobiles were delivered on January 1, 2024, and Arctic received a note from Seneca indicating that Seneca will pay Arctic $30,700 on a future date. Unless informed otherwise, assume that Arctic views the time value of money component of this arrangement to be significant and that the relevant interest rate is 11%. Required: 1. Assume the note indicates that Seneca is to pay Arctic the $30,700 due on the note on December 31, 2024. Prepare the journal entry for Arctic to record the sale on January 1, 2024. 2. Assume the same facts as in requirement 1, and prepare the journal entry for Arctic to record collection of the payment on December 31, 2024. 3. Assume instead that Seneca is to pay Arctic the $30,700 due on the note on December 31, 2025. Prepare the journal entry for Arctic to record the sale on January 1, 2024. 4. Assume instead that Arctic does not view the time value of money component of this arrangement to be significant and that the note indicates that Seneca is to pay Arctic the $30,700 due on the note on December 31, 2024. Prepare the journal entry for Arctic to record the sale on January 1, 2024. Note: Use tables, Excel, or a financial calculator. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) > Answer is not complete. No Date 1 January 01, 2024 Notes receivable General Journal Debit Credit 30,700 Discount on notes receivable Sales revenue 3,041 27,659 2 December 31, 202 Cash Notes receivable Interest revenue 3 January 01, 2024 Notes receivable Sales revenue Discount on notes receivable 4 January 01, 2024 Notes receivable Sales revenue > > > 30,700 30,700 30,700

Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles. The snowmobiles were delivered on January 1, 2024, and Arctic received a note from Seneca indicating that Seneca will pay Arctic $30,700 on a future date. Unless informed otherwise, assume that Arctic views the time value of money component of this arrangement to be significant and that the relevant interest rate is 11%. Required: 1. Assume the note indicates that Seneca is to pay Arctic the $30,700 due on the note on December 31, 2024. Prepare the journal entry for Arctic to record the sale on January 1, 2024. 2. Assume the same facts as in requirement 1, and prepare the journal entry for Arctic to record collection of the payment on December 31, 2024. 3. Assume instead that Seneca is to pay Arctic the $30,700 due on the note on December 31, 2025. Prepare the journal entry for Arctic to record the sale on January 1, 2024. 4. Assume instead that Arctic does not view the time value of money component of this arrangement to be significant and that the note indicates that Seneca is to pay Arctic the $30,700 due on the note on December 31, 2024. Prepare the journal entry for Arctic to record the sale on January 1, 2024. Note: Use tables, Excel, or a financial calculator. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) > Answer is not complete. No Date 1 January 01, 2024 Notes receivable General Journal Debit Credit 30,700 Discount on notes receivable Sales revenue 3,041 27,659 2 December 31, 202 Cash Notes receivable Interest revenue 3 January 01, 2024 Notes receivable Sales revenue Discount on notes receivable 4 January 01, 2024 Notes receivable Sales revenue > > > 30,700 30,700 30,700

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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Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles. The snowmobiles were delivered on January 1, 2024, and Arctic received a note from Seneca indicating that Seneca will pay Arctic $30,700 on a future date. Unless informed otherwise, assume that Arctic views the time value of money component of this arrangement to be significant and that the relevant interest rate is 11%. Required: 1. Assume the note indicates that Seneca is to pay Arctic the $30,700 due on the note on December 31, 2024. Prepare the journal entry for Arctic to record the sale on January 1, 2024. 2. Assume the same facts as in requirement 1, and prepare the journal entry for Arctic to record collection of the payment on December 31, 2024. 3. Assume instead that Seneca is to pay Arctic the $30,700 due on the note on December 31, 2025. Prepare the journal entry for Arctic to record the sale on January 1, 2024. 4. Assume instead that Arctic does not view the time value of money component of this arrangement to be significant and that the note indicates that Seneca is to pay Arctic the $30,700 due on the note on December 31, 2024. Prepare the journal entry for Arctic to record the sale on January 1, 2024. Note: Use tables, Excel, or a financial calculator. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) > Answer is not complete. No Date 1 January 01, 2024 Notes receivable General Journal Debit Credit 30,700 Discount on notes receivable Sales revenue 3,041 27,659 2 December 31, 202 Cash Notes receivable Interest revenue 3 January 01, 2024 Notes receivable Sales revenue Discount on notes receivable 4 January 01, 2024 Notes receivable Sales revenue > > > 30,700 30,700 30,700
Transcribed Image Text:Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles. The snowmobiles were delivered on January 1, 2024, and Arctic received a note from Seneca indicating that Seneca will pay Arctic $30,700 on a future date. Unless informed otherwise, assume that Arctic views the time value of money component of this arrangement to be significant and that the relevant interest rate is 11%. Required: 1. Assume the note indicates that Seneca is to pay Arctic the $30,700 due on the note on December 31, 2024. Prepare the journal entry for Arctic to record the sale on January 1, 2024. 2. Assume the same facts as in requirement 1, and prepare the journal entry for Arctic to record collection of the payment on December 31, 2024. 3. Assume instead that Seneca is to pay Arctic the $30,700 due on the note on December 31, 2025. Prepare the journal entry for Arctic to record the sale on January 1, 2024. 4. Assume instead that Arctic does not view the time value of money component of this arrangement to be significant and that the note indicates that Seneca is to pay Arctic the $30,700 due on the note on December 31, 2024. Prepare the journal entry for Arctic to record the sale on January 1, 2024. Note: Use tables, Excel, or a financial calculator. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) > Answer is not complete. No Date 1 January 01, 2024 Notes receivable General Journal Debit Credit 30,700 Discount on notes receivable Sales revenue 3,041 27,659 2 December 31, 202 Cash Notes receivable Interest revenue 3 January 01, 2024 Notes receivable Sales revenue Discount on notes receivable 4 January 01, 2024 Notes receivable Sales revenue > > > 30,700 30,700 30,700
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