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On December 31, 2025, Blue Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Blue Co. agreed to accept a $346,500 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%. Blue 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 Blue Co. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and final answers to O decimal places, eg. 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 Notes Receivable Discount on Notes Receivable Service Revenue Debit 346500 Credit 281226 65274

On December 31, 2025, Blue Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Blue Co. agreed to accept a $346,500 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%. Blue 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 Blue Co. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and final answers to O decimal places, eg. 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 Notes Receivable Discount on Notes Receivable Service Revenue Debit 346500 Credit 281226 65274

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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On December 31, 2025, Blue Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Blue Co. agreed to accept a $346,500 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%. Blue 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 Blue Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, eg. 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 Notes Receivable Discount on Notes Receivable Service Revenue Debit 346500 Credit 281226 65274
Transcribed Image Text:On December 31, 2025, Blue Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Blue Co. agreed to accept a $346,500 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%. Blue 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 Blue Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, eg. 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 Notes Receivable Discount on Notes Receivable Service Revenue Debit 346500 Credit 281226 65274
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