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(Solved) On July 1, 2017, Cheyenne Inc. made two sales. It sold land having a fair value of $907,040 in exchange for a 3-year zero-interest-bearing promissory...


On July 1, 2017, Cheyenne Inc. made two sales.


1. It sold land having a fair value of $907,040 in exchange for a 3-year zero-interest-bearing promissory note in the face amount of $1,240,498. The land is carried on Cheyenne's books at a cost of $596,000.
2. It rendered services in exchange for a 4%, 6-year promissory note having a face value of $406,680 (interest payable annually).


Cheyenne Inc. recently had to pay 9% 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 11% interest.


Record the two journal entries that should be recorded by Cheyenne Inc. for the sales transactions above that took place on July 1, 2017.(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.)


No. Date Account Titles and Explanation Debit Credit
1. July 1, 2017
2. July 1, 2017
Exercise 7-20  Presented below is information for Ivanhoe Company.

1. Beginning-of-the-year Accounts Receivable balance was $22,900.
2. Net sales (all on account) for the year were $107,300. Ivanhoe does not offer cash discounts.
3. Collections on accounts receivable during the year were $83,900.
(a) Prepare (summary) journal entries to record the items noted above. (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.)

No. Account Titles and Explanation Debit Credit
1.
2.
3.

E 7-4

Your accounts receivable clerk, Mitra Adams, to whom you pay a salary of $2,535 per month, has just purchased a new Acura. You decide to test the accuracy of the accounts receivable balance of $138,580 as shown in the ledger.


The following information is available for yourfirst yearin business.


(1) Collections from customers $334,620
(2) Merchandise purchased 540,800
(3) Ending merchandise inventory 152,100
(4) Goods are marked to sell at 40% above cost


Compute an estimate of the ending balance of accounts receivable from customers that should appear in the ledger and any apparent shortages. Assume that all sales are made on account.


The ending balance of accounts receivable from customers $
Apparent shortage $








 


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