Solutions_-_Exercises_-_Unit_5

# Solutions_-_Exercises_-_Unit_5 - (1) \$8,240 \$8,240 × .12...

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Financial Accounting I Grado Administracion de Empresa Exercises

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Chapter 5. Accounts Receivable: Especial issues Exercise 5.1: Transferring receivables A company received the following notes during 2008. The notes were discounted on the dates an at the rates indicated: Solution to Exercise 5.1 Req. 1 Note Due Date Principal + Interest = Maturity Value (1) Dec. 30, 2008 \$8,000 + (\$8,000 × .09 × 120/360) = \$8,240 (2) Nov. 17, 2008 9,000 + (\$9,000 × .08 × 90/360) = 9,180 (3) Jan. 15, 2009 6,000 + (\$6,000 × .06 × 6/12) = 6,180 Req. 2 Note Maturity Value Discount = Proceeds

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Unformatted text preview: (1) \$8,240 \$8,240 × .12 × 58/360 = 159 \$8,081 (2) 9,180 \$9,180 × .10 × 79/360 = 201 8,979 (3) 6,180 \$6,180 × .08 × 3/12 = \$124 6,056 Req. 3 Journal DATE ACCOUNTS AND EXPLANATIONS POST. REF. DEBIT CREDIT (1) Nov. 2 Cash 8,081 Note Receivable 8,000 Interest Revenue 81 (2) Aug. 30 Cash 8,979 Interest Expense 21 Note Receivable 9,000 Exercise 5.2: Recognising revenues on long-term contracts I (Problem 10.5; Sutton, 2004, p. 305) Solution to exercise 5.2 Exercise 5.3: Recognising revenues on long-term contracts II (Problem 10.6; Sutton, 2004, p. 305) Solution to exercise 5.3...
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## This note was uploaded on 02/03/2011 for the course ECON 101 taught by Professor Flora during the Spring '11 term at Universidad Carlos III de Madrid.

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Solutions_-_Exercises_-_Unit_5 - (1) \$8,240 \$8,240 × .12...

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