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. (a) Prepare the journal entry to record the transaction of December 31, 2020, for the Larkspur 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
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. (a) Prepare the journal entry to record the transaction of December 31, 2020, for the Larkspur 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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https://education.wiley.com/content/Kieso_Intermediate_Accounting_17e/media/simulations/interest_rate_tables.pdf
Transcribed Image Text:**Transaction Details:**
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%.
**Factor Table:**
- A link is provided to view the factor table.
**Journal Entry Instructions:**
- Prepare the journal entry to record the transaction of December 31, 2020, for Larkspur Co.
- Round present value factor calculations to five decimal places (e.g., 1.25124) and final answers to zero decimal places (e.g., 5,275).
- If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.
- Credit account titles are automatically indented when the amount is entered. Do not indent manually.
**Journal Entry Template:**
| Date | Account Titles and Explanation | Debit | Credit |
|--------------|--------------------------------|-------|--------|
| Dec. 31, 2020| | | |
| | | | |
| | | | |
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