Domestic On July 1, 2023, Larkspur Inc. made two sales:1.2.It sold excess land in exchange for a four-year, non-interest-bearing promissory note in the face amount of $1,118,820. Theland's carrying value is $620,000.It rendered services in exchange for an eight-year promissory note having a face value of $490,000. Interest at a rate of 2% ispayable annually.The customers in the above transactions have credit ratings that require them to borrow money at 11% interest.3.Larkspur recently had to pay 8% interest for money it borrowed from British Bank.On July 1, 2023, Larkspur also agreed to accept an installment note from one of its customers in partial settlement ofaccounts receivable that were overdue. The note calls for four equal payments of $22,000, including the principal andinterest due, on the anniversary of the note. The implied interest rate on this note is 10%. Prepare the journal entries to record the three notes receivable transactions of Larkspur on July 1, 2023. (For calculation purposes,use 5 decimal places as displayed in the factor table provided. Round answers to 0 decimal places, e.g. 58,971. Credit account titles areautomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titlesand enter O for the amounts. List all debit entries before credit entries.)No. Account Titles and Explanation1.2.3.DebitCredit

A notes receivable, which is as per the non-interest bearing note means that the present value is…

Prepare the journal entries to record the three notes receivable transactions of Larkspur on July 1, 2023. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answers to O decimal places, e.g. 58,971. 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 O for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation 1. 2. 3. Debit Credit

Prepare the journal entries to record the three notes receivable transactions of Larkspur on July 1, 2023. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answers to O decimal places, e.g. 58,971. 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 O for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation 1. 2. 3. Debit Credit

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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