On January 1, 2024, Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wright received a note requiring payment of $521,000 by Elmira on December 31, 2026. The effective interest rate is 7%. Note: Use appropriate factor(s) from the tables provided. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: 1. How much sales revenue would Wright recognize on January 1, 2024, for this transaction? 2. Prepare journal entries to record the sale of merchandise on January 1, 2024 (omit any entry that might be required for the cost of the goods sold), the December 31, 2024, interest accrual, the December 31, 2025, interest accrual, and receipt of payment of the note on December 31, 2026. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to record the sale of merchandise on January 1, 2024 (omit any entry that might be required for the cost of the goods sold), the December 31, 2024, interest accrual, the December 31, 2025, interest accrual, and receipt of payment of the note on December 31, 2026. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations and round your final answers to nearest whole number. View transaction list Journal entry worksheet 1 Note: 2 Record the sale of goods on January 1, 2024 in exchange for the long term note. 3 debits before credits. Date January 01, 2024 Record entry 4 5 General Journal Clear entry Debit Credit View general journal > Show less
On January 1, 2024, Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wright received a note requiring payment of $521,000 by Elmira on December 31, 2026. The effective interest rate is 7%. Note: Use appropriate factor(s) from the tables provided. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: 1. How much sales revenue would Wright recognize on January 1, 2024, for this transaction? 2. Prepare journal entries to record the sale of merchandise on January 1, 2024 (omit any entry that might be required for the cost of the goods sold), the December 31, 2024, interest accrual, the December 31, 2025, interest accrual, and receipt of payment of the note on December 31, 2026. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to record the sale of merchandise on January 1, 2024 (omit any entry that might be required for the cost of the goods sold), the December 31, 2024, interest accrual, the December 31, 2025, interest accrual, and receipt of payment of the note on December 31, 2026. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations and round your final answers to nearest whole number. View transaction list Journal entry worksheet 1 Note: 2 Record the sale of goods on January 1, 2024 in exchange for the long term note. 3 debits before credits. Date January 01, 2024 Record entry 4 5 General Journal Clear entry Debit Credit View general journal > Show less
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
im,2
Transcribed Image Text:On January 1, 2024, Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wright received a
note requiring payment of $521,000 by Elmira on December 31, 2026. The effective interest rate is 7%.
Note: Use appropriate factor(s) from the tables provided. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
Required:
1. How much sales revenue would Wright recognize on January 1, 2024, for this transaction?
2. Prepare journal entries to record the sale of merchandise on January 1, 2024 (omit any entry that might be required for the cost
of the goods sold), the December 31, 2024, interest accrual, the December 31, 2025, interest accrual, and receipt of payment of
the note on December 31, 2026.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Prepare journal entries to record the sale of merchandise on January 1, 2024 (omit any entry that might be required for the cost of the
goods sold), the December 31, 2024, interest accrual, the December 31, 2025, interest accrual, and receipt of payment of the note on
December 31, 2026.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round
intermediate calculations and round your final answers to nearest whole number.
View transaction list
Journal entry worksheet
<
1
2
3 4
Record the sale of goods on January 1, 2024 in exchange for the long term
note.
Note: Enter debits before credits.
Date
January 01, 2024
Record entry
5
General Journal
Clear entry
Debit
Credit
View general journal
Show less
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