On January 2, 2022, Larkspur SE sells goods to Geo Company in exchange for a zero-interest-bearing note with face value of with payment due in 12 months. The fair value of the goods at the date of sale is €8,600 (cost €5,160). Prepare the journal entries to record this transaction on January 2, 2022. (Credit account titles are automatically indente amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter O amounts.) Date Account Titles and Explanation Jan. 2, 2022 Notes Receivable Debit 9400 Credit
On January 2, 2022, Larkspur SE sells goods to Geo Company in exchange for a zero-interest-bearing note with face value of with payment due in 12 months. The fair value of the goods at the date of sale is €8,600 (cost €5,160). Prepare the journal entries to record this transaction on January 2, 2022. (Credit account titles are automatically indente amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter O amounts.) Date Account Titles and Explanation Jan. 2, 2022 Notes Receivable Debit 9400 Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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subject-Accounting
Transcribed Image Text:On January 2, 2022, Larkspur SE sells goods to Geo Company in exchange for a zero-interest-bearing note with face value of €9,400,
with payment due in 12 months. The fair value of the goods at the date of sale is €8,600 (cost €5,160).
Prepare the journal entries to record this transaction on January 2, 2022. (Credit account titles are automatically indented when
amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter O for the
amounts.)
Date
Jan. 2, 2022
Account Titles and Explanation
Total revenue
Notes Receivable
Service Revenue
(To record sales)
Cost of Goods Sold
Inventory
(To record cost of goods sold)
How much total revenue should be recognized in 2022?
4240
Debit
E
9400
II
5160
Credit
9400
5160
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