Practice Exercise 14-04 (Part Level Submission) On January 1, 2017, Windsor Inc. borrowed and received $360,000 from a major customer, Swifty Corp. The debt is evidenced by a zero-interest-bearing note due in 4 years. Windsor, as consideration for the zero-interest-bearing feature of the note, agrees that it will supply inventory to Swifty for the loan period at a below-market price. The appropriate rate at which to impute interest is 8%. Prepare the journal entry to record the initial transaction on January 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT Attempts: 3 of 3 used (b) Prepare the journal entries to record any adjusting entries needed at December 31, 2017. Assume that the sales of Windsor’ product to Swifty occur 27% in year 1, 27% in year 2, 17% in year 3, and 29% in year 4. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title to record interest expense enter a debit amount enter a credit amount enter an account title to record interest expense enter a debit amount enter a credit amount (To record interest expense) enter an account title to record sales of the first year enter a debit amount enter a credit amount enter an account title to record sales of the first year enter a debit amount enter a credit amount (TO record sales of 1st year) Click if you would like to Show Work for this question: Open Show Work

Practice Exercise 14-04 (Part Level Submission) On January 1, 2017, Windsor Inc. borrowed and received $360,000 from a major customer, Swifty Corp. The debt is evidenced by a zero-interest-bearing note due in 4 years. Windsor, as consideration for the zero-interest-bearing feature of the note, agrees that it will supply inventory to Swifty for the loan period at a below-market price. The appropriate rate at which to impute interest is 8%. Prepare the journal entry to record the initial transaction on January 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT Attempts: 3 of 3 used (b) Prepare the journal entries to record any adjusting entries needed at December 31, 2017. Assume that the sales of Windsor’ product to Swifty occur 27% in year 1, 27% in year 2, 17% in year 3, and 29% in year 4. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title to record interest expense enter a debit amount enter a credit amount enter an account title to record interest expense enter a debit amount enter a credit amount (To record interest expense) enter an account title to record sales of the first year enter a debit amount enter a credit amount enter an account title to record sales of the first year enter a debit amount enter a credit amount (TO record sales of 1st year) Click if you would like to Show Work for this question: Open Show Work

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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Practice Exercise 14-04 (Part Level Submission)

On January 1, 2017, Windsor Inc. borrowed and received $360,000 from a major customer, Swifty Corp. The debt is evidenced by a zero-interest-bearing note due in 4 years. Windsor, as consideration for the zero-interest-bearing feature of the note, agrees that it will supply inventory to Swifty for the loan period at a below-market price. The appropriate rate at which to impute interest is 8%.

Prepare the journal entry to record the initial transaction on January 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

Click if you would like to Show Work for this question:

Open Show Work

SHOW LIST OF ACCOUNTS

SHOW SOLUTION

LINK TO TEXT

Attempts: 3 of 3 used

(b)

Prepare the journal entries to record any adjusting entries needed at December 31, 2017. Assume that the sales of Windsor’ product to Swifty occur 27% in year 1, 27% in year 2, 17% in year 3, and 29% in year 4. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
enter an account title to record interest expense	enter a debit amount	enter a credit amount
enter an account title to record interest expense	enter a debit amount	enter a credit amount
(To record interest expense)
enter an account title to record sales of the first year	enter a debit amount	enter a credit amount
enter an account title to record sales of the first year	enter a debit amount	enter a credit amount
(TO record sales of 1st year)

Click if you would like to Show Work for this question:

Open Show Work

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