On July 1, 2019, SEK Company sold goods to Grant Company for R$900,000 in exchange for a 4-year, zero-interest-bearing note with a face amount of R$1,416,163. The goods have a cost on SEK’s books of R$590,000. Questions: (a) How much revenue should SEK Company record on July 1, 2019? (b) How much revenue should it report related to this transaction on December 31, 2019?
On July 1, 2019, SEK Company sold goods to Grant Company for R$900,000 in exchange for a 4-year, zero-interest-bearing note with a face amount of R$1,416,163. The goods have a cost on SEK’s books of R$590,000. Questions: (a) How much revenue should SEK Company record on July 1, 2019? (b) How much revenue should it report related to this transaction on December 31, 2019?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Facts: On July 1, 2019, SEK Company sold goods to Grant Company for R$900,000 in
exchange for a 4-year, zero-interest-bearing note with a face amount of R$1,416,163. The
goods have a cost on SEK’s books of R$590,000.
Questions: (a) How much revenue should SEK Company record on July 1, 2019? (b) How much
revenue should it report related to this transaction on December 31, 2019?
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