maturity. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round answers to O decimal places, e.g. 5,815.) Account Titles and Explanation (To record the receipt of the note at a discount.) (To record the interest revenue at the end of 1st year.) (To record the interest revenue at the end of 2nd year.) (To record collection of note.) Debit Credit 10 00 00 00 ]]]]]]
maturity. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round answers to O decimal places, e.g. 5,815.) Account Titles and Explanation (To record the receipt of the note at a discount.) (To record the interest revenue at the end of 1st year.) (To record the interest revenue at the end of 2nd year.) (To record collection of note.) Debit Credit 10 00 00 00 ]]]]]]
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Ghugho
![Carla Vista Company loaned $78,017 to Flint, Inc., accepting Flint's 2-year, $94,400, zero-interest-bearing note. The implied interes
rate is 10%.
Prepare Carla Vista's journal entries for the initial transaction, recognition of interest each year, and the collection of $94,400 at
maturity. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before
credit entries. Round answers to O decimal places, e.g. 5,815.)
Account Titles and Explanation
(To record the receipt of the note at a discount.)
(To record the interest revenue at the end of 1st year.)
(To record the interest revenue at the end of 2nd year.)
(To record collection of note.)
Debit
Credit
]]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6b4cfa66-3ca1-4a52-ab67-883b628d80d6%2Ff5dd22a3-ad00-40e5-8e52-1cf87423189c%2F30zaklf_processed.png&w=3840&q=75)
Transcribed Image Text:Carla Vista Company loaned $78,017 to Flint, Inc., accepting Flint's 2-year, $94,400, zero-interest-bearing note. The implied interes
rate is 10%.
Prepare Carla Vista's journal entries for the initial transaction, recognition of interest each year, and the collection of $94,400 at
maturity. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before
credit entries. Round answers to O decimal places, e.g. 5,815.)
Account Titles and Explanation
(To record the receipt of the note at a discount.)
(To record the interest revenue at the end of 1st year.)
(To record the interest revenue at the end of 2nd year.)
(To record collection of note.)
Debit
Credit
]]
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