Please figure this out in accounting. Current Attempt in ProgressOn December 31, 2025, Crane Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, andCrane Co. agreed to accept a $264,600 zero-interest-bearing note due December 31, 2027, as payment in full. Hayduke is somewhatof a credit risk and typically borrows funds at a rate of 12%. Crane is much more creditworthy and has various lines of credit at 6%.(a)Your answer is partially correct.Prepare the journal entry to record the transaction of December 31, 2025, for the Crane Co. (Round present value factorcalculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. If no entry is required, select "No Entry" forthe account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indentmanually. List all debit entries before credit entries.)DateAccount Titles and ExplanationDec. 31,2025Notes ReceivableService RevenueDiscount on Notes ReceivableeTextbook and MediaDebit264600Credit53648210952

Step 1: Understanding the Transaction Crane Co. provides environmental consulting services to…

Answered: Current Attempt in Progress On December…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter7: Financial Activities

Section: Chapter Questions

Problem 7QE

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On December 31, 2020, Monty Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Monty Co. agreed to accept a $296,600 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 12%. Monty is much more creditworthy and has various lines of credit at 6%. Prepare the journal entry to record the transaction of December 31, 2020, for the Monty Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Date Account Titles and Explanation Dec. 31, 2020 eTextbook and Media List of Accounts Assuming Monty Co's fiscal year-end is December 31, prepare the journal entry for December 31, 2021. (Round…
On December 31, 2025, Sheridan Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Sheridan Co. agreed to accept a $309,400 zero-interest-bearing note due December 31, 2027, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Sheridan is much more creditworthy and has various lines of credit at 7%. (a) Prepare the journal entry to record the transaction of December 31, 2025, for the Sheridan Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Dec. 31, 2025 Account Titles and Explanation Debit Credit
On December 31, 2025, Bonita Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Bonita Co. agreed to accept a $328,100 zero-interest-bearing note due December 31, 2027, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Bonita is much more creditworthy and has various lines of credit at 6%. (a) Prepare the journal entry to record the transaction of December 31, 2025, for the Bonita Co. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and final answers to O decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries) Date Account Titles and Explanation Dec 31, 2025 Debit Credit
6
On December 31, 2020, Larkspur Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Larkspur Co. agreed to accept a $ 252,100 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Larkspur is much more creditworthy and has various lines of credit at 6%.Click here to view factor table. https://education.wiley.com/content/Kieso_Intermediate_Accounting_17e/media/simulations/interest_rate_tables.pdf
On December 31, 2020, Ed Abbey Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Abbey Co. agreed to accept a $200,000 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Abbey is much more creditworthy and has various lines of credit at 6%. For step 1, why is it worked out 1/1.1 and answer divided by 1.1 to get 0.826446? Can you explain it to me step by step please. It is PV at 10% for end of year 2. I am having trouble understanding the process. Can you please explain it to me?
On December 31, 2020, Sarasota Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Sarasota Co. agreed to accept a $337,600 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Sarasota is much more creditworthy and has various lines of credit at 5%. Click here to view factor table. (a) Your answer is partially correct. Prepare the journal entry to record the transaction of December 31, 2020, for the Sarasota Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Dec. 31, 2020 Account Titles and Explanation Notes Receivable Debit 337,600 Credit 107 IN
On December 31, 2020, Sarasota Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Sarasota Co. agreed to accept a $337,600 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Sarasota is much more creditworthy and has various lines of credit at 5%. Click here to view factor table. (a) Your answer is partially correct. Prepare the journal entry to record the transaction of December 31, 2020, for the Sarasota Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Dec. 31, 2020 Account Titles and Explanation Notes Receivable Service Revenue Discount on Notes Receivable Debit…
By December 31, 2020, PEI Potato Corp. had performed a significant amount of environmental consulting services for Spud Ltd. Spud was short of cash, and PEI Potato agreed to accept a $200,000, non–interest-bearing note due December 31, 2022, as payment in full. Spud is a bit of a credit risk and typically borrows funds at a rate of 12%. PEI Potato is much more creditworthy and has various lines of credit at 9%. PEO Potato Corp. reports under IFRS. Required Prepare the journal entry to record the transaction on December 31, 2020, for PEI Potato Corp. Assuming PEI Potato's fiscal year end is December 31, prepare the journal entry required at December 31, 2021. Assuming PEI Potato's fiscal year end is December 31, prepare the journal entry required at December 31, 2022. What are the amount and classification of the note on PEI Potato Corp.'s SFP as at December 31, 2021? Assume instead that PEI Potato reports under ASPE and uses the straight-line method to amortize the discount on the…

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