Problem 7-9 - PROBLEM 7-9 (a) December 31, 2010 Cash ....

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PROBLEM 7-9 (a) December 31, 2010 Cash . ...................................................................... 40,000 Notes Receivable . ................................................. 80,000 Discount on Notes Receivable . .................. 17,951 Service Revenue . ......................................... 102,049 To record revenue at the present value of the note plus the immediate cash payment: PV of $20,000 annuity @ 11% for 4 years ($20,000 X 3.10245) . ........... $ 62,049 Down payment . .................................. 40,000 Capitalized value of services. ........... $102,049 (b) December 31, 2011 Cash . ........................................................................... 20,000 Notes Receivable . ............................................. 20,000 Discount on Notes Receivable. ................................. 6,825 Interest Revenue. .............................................. 6,825 Schedule of Note Discount Amortization Date Cash Received Interest Revenue Carrying Amount of Note
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Problem 7-9 - PROBLEM 7-9 (a) December 31, 2010 Cash ....

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