Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on july 1, 2020, whispering inc. made two sales. 1

On July 1, 2020, Whispering Inc. made two sales. 1. It sold land having a...

60.1K

Verified Solution

Question

Accounting

On July 1, 2020, Whispering Inc. made two sales. 1. It sold land having a fair value of $914,620 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,439,168. The land is carried on Whispering's books at a cost of $600,100. 2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $405,130 (interest payable annually). Whispering Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest. Record the two journal entries that should be recorded by Whispering Inc. for the sales transactions above that took place on July 1, 2020. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students