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Cornerstone Exercise 5-35 (Algorithmic) Notes Receivable Link Communications programs voicemail systems for businesses. For a recent project, they charged $135,000. The customer secured this amount by signing a note bearing 12% interest on February 1, 2019. Required: 1. Prepare the journal entry to record the sale on February 1, 2019. Notes Receivable 135,000 Sales Revenue Record sale Feedback Check My Work 135,000 1. Revenue can be recognized when earned, even if the customer has not paid, as long as collectability is reasonably assured. 2. Determine how much interest Link will receive if the note is repaid on December 1, 2019. Round your answer to the nearest whole dollar. 11,250 X Feedback Check My Work 2. When calculating interest, consider the principal, the annual interest rate and the duration of the note. 3. Prepare Link's journal entry to record the cash received to pay off the note and interest on December 1, 2019. If an amount box does not require an entry, leave it blank. 146,250 X Cash Interest Income Notes Receivable Record collection of note 11,250 X 135,000

Cornerstone Exercise 5-35 (Algorithmic) Notes Receivable Link Communications programs voicemail systems for businesses. For a recent project, they charged $135,000. The customer secured this amount by signing a note bearing 12% interest on February 1, 2019. Required: 1. Prepare the journal entry to record the sale on February 1, 2019. Notes Receivable 135,000 Sales Revenue Record sale Feedback Check My Work 135,000 1. Revenue can be recognized when earned, even if the customer has not paid, as long as collectability is reasonably assured. 2. Determine how much interest Link will receive if the note is repaid on December 1, 2019. Round your answer to the nearest whole dollar. 11,250 X Feedback Check My Work 2. When calculating interest, consider the principal, the annual interest rate and the duration of the note. 3. Prepare Link's journal entry to record the cash received to pay off the note and interest on December 1, 2019. If an amount box does not require an entry, leave it blank. 146,250 X Cash Interest Income Notes Receivable Record collection of note 11,250 X 135,000

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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Cornerstone Exercise 5-35 (Algorithmic) Notes Receivable Link Communications programs voicemail systems for businesses. For a recent project, they charged $135,000. The customer secured this amount by signing a note bearing 12% interest on February 1, 2019. Required: 1. Prepare the journal entry to record the sale on February 1, 2019. Notes Receivable 135,000 Sales Revenue Record sale Feedback Check My Work 135,000 1. Revenue can be recognized when earned, even if the customer has not paid, as long as collectability is reasonably assured. 2. Determine how much interest Link will receive if the note is repaid on December 1, 2019. Round your answer to the nearest whole dollar. 11,250 X Feedback Check My Work 2. When calculating interest, consider the principal, the annual interest rate and the duration of the note. 3. Prepare Link's journal entry to record the cash received to pay off the note and interest on December 1, 2019. If an amount box does not require an entry, leave it blank. 146,250 X Cash Interest Income Notes Receivable Record collection of note 11,250 X 135,000
Transcribed Image Text:Cornerstone Exercise 5-35 (Algorithmic) Notes Receivable Link Communications programs voicemail systems for businesses. For a recent project, they charged $135,000. The customer secured this amount by signing a note bearing 12% interest on February 1, 2019. Required: 1. Prepare the journal entry to record the sale on February 1, 2019. Notes Receivable 135,000 Sales Revenue Record sale Feedback Check My Work 135,000 1. Revenue can be recognized when earned, even if the customer has not paid, as long as collectability is reasonably assured. 2. Determine how much interest Link will receive if the note is repaid on December 1, 2019. Round your answer to the nearest whole dollar. 11,250 X Feedback Check My Work 2. When calculating interest, consider the principal, the annual interest rate and the duration of the note. 3. Prepare Link's journal entry to record the cash received to pay off the note and interest on December 1, 2019. If an amount box does not require an entry, leave it blank. 146,250 X Cash Interest Income Notes Receivable Record collection of note 11,250 X 135,000
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