1. On January 1, 20X3, Gaudreau Enterprises sold goods in exchange for a $200,000, fiveyear… 1 answer below »

1.    On January 1, 20X3, Gaudreau Enterprises sold goods in exchange for a $200,000, fiveyear interest-free note from the purchaser. The note was repayable at $40,000 per annum, with the first payment due on December 31, 20X3. The market rate of interest for similar notes was 6% per annum. Gaudreau Enterprises only records adjusting entries at year end. What amount of interest revenue should Gaudreau Enterprises accrue at its December 31, 20X3, year end?

2.    On July 1, 20X3, Clear Water Corp. received a $45,000, three-year, 6% note receivable from a customer for services performed. Interest is payable annually, with the first payment due on June 30, 20X4. The market rate for similar notes is 8%. Clear Water has a December 31 fiscal year end. How much interest revenue should Clear Water recognize in the December 31, 20X3, fiscal year?

 

Needs help with similar assignment?

We are available 24x7 to deliver the best services and assignment ready within 3-4 hours? Order a custom-written, plagiarism-free paper

Order Over WhatsApp Place an Order Online

Do you have an upcoming essay or assignment due?

All of our assignments are originally produced, unique, and free of plagiarism.

If yes Order Similar Paper