On December 31, 2020, Monty Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Monty Co. agreed toaccept a $296,600 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrowsfunds 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. Creditaccount titles are automatically indented when the amount is entered. Do not indent manually.)DebitDate Account Titles and ExplanationDec. 31, 2020eTextbook and MediaList of AccountsAssuming Monty Co's fiscal year-end is December 31, prepare the journal entry for December 31, 2021. (Round 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 isentered. Do not indent manually.)Date Account Titles and ExplanationDec. 31, 2021eTextbook and MediaList of AccountsDebitDateDec. 31, 2022CreditAssuming Monty Co's fiscal year-end is December 31, prepare the journal entry for December 31, 2022. (If no entry is required, select "No Entry" for theaccount titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)Account Titles and ExplanationDebitCreditCredit

A journal entry is a financial record kept by a company or individual to record a specific financial…

On December 31, 2020, Monty Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Monty C accept a $296,600 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typicall funds at a rate of 12%. Monty is much more creditworthy and has various lines of credit at 6%.

On December 31, 2020, Monty Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Monty C accept a $296,600 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typicall funds at a rate of 12%. Monty is much more creditworthy and has various lines of credit at 6%.

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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Concept explainers

Bad Debts

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.

Accounts Receivable

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.

Question

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 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.)
Date Account Titles and Explanation
Dec. 31, 2021
eTextbook and Media
List of Accounts
Debit
Date
Dec. 31, 2022
Credit
Assuming Monty Co's fiscal year-end is December 31, prepare the journal entry for December 31, 2022. (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.)
Account Titles and Explanation
Debit
Credit
Credit

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