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    IA Activity 3 Chapter 6

    Uploaded by

    Sunghoon Ssi
    The document contains journal entries and accounting problems from Chapter 6 of an accounting textbook. The journal entries are for Feasible Company for the years 2020, 2021, and 2022, and record transactions related to the sale of land, accrued interest receivable, and payment received on a note receivable. The problems calculate sales revenue using present value, the carrying amount and discount on a note receivable, interest income, and multiple choice questions.

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    IA Activity 3 Chapter 6

    Uploaded by

    Sunghoon Ssi
    791 views2 pages
    The document contains journal entries and accounting problems from Chapter 6 of an accounting textbook. The journal entries are for Feasible Company for the years 2020, 2021, and 2022, and record transactions related to the sale of land, accrued interest receivable, and payment received on a note receivable. The problems calculate sales revenue using present value, the carrying amount and discount on a note receivable, interest income, and multiple choice questions.

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    The document contains journal entries and accounting problems from Chapter 6 of an accounting textbook. The journal entries are for Feasible Company for the years 2020, 2021, and 2022, and record transactions related to the sale of land, accrued interest receivable, and payment received on a note receivable. The problems calculate sales revenue using present value, the carrying amount and discount on a note receivable, interest income, and multiple choice questions.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    791 views2 pages

    IA Activity 3 Chapter 6

    Uploaded by

    Sunghoon Ssi
    The document contains journal entries and accounting problems from Chapter 6 of an accounting textbook. The journal entries are for Feasible Company for the years 2020, 2021, and 2022, and record transactions related to the sale of land, accrued interest receivable, and payment received on a note receivable. The problems calculate sales revenue using present value, the carrying amount and discount on a note receivable, interest income, and multiple choice questions.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    CHAPTER 6

    Problem 6 – 1 (ACP)
    Required:
    Prepare journal entries for 2020, 2021, and 2022

    Feasible Company
    Journal Entries

    2020
    Jan. 1 Cash 1,000,000
    Notes receivable 6,000,000
    Land 5,000,000
    Gain on sale of land 2,000,000

    Dec. 31 Accrued interest receivable 720,000


    Interest income (6,000,000 x 12%) 720,000

    2021
    Dec. 31 Accrued interest receivable 806,400
    Interest income (6,720,000 x 12%) 806,400

    2022
    Jan. 1 Cash 7,526,400
    Notes receivable 6,000,000
    Accrued interest receivable 1,526,400

    Problem 6 – 8 (AICPA Adapted)

    What amount should be reported as sales revenue?

    First payment on January 1, 2020 600,000


    Present value of the remaining six payments (600,000 x 4.36) 2,616,000
    Correct sales revenue 3,216,000

    Problem 6 – 12 (AICPA Adapted)

    1. Carrying amount of Notes receivable = (500,000 x 5.650)


    Carrying amount of Notes receivable = d. 2,825,000

    2. 2,825,000 – 2,000,000 = c. 825,000

    3. 2,825,000 x 12% = b. 339,000

    4. 500,000 x 0.322 = 161,000


    2,825,000 – 161,000 = d. 2,664,000

    Problem 6 – 15 Multiple choice (AICPA Adapted)

    1. a
    2. b
    3. c
    4. b
    5. c
    6. b
    7. d
    8. b
    9. d
    10. b

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