On January 1, 2020, Hamid Company sold goods to Khaled Company. Khaled signed a noninterest-bearing note requiring payment of P600, 000 annually for seven years. The first payment was made on January 1, 2020. The prevailing rate of interest for this type of note at date of issuance was 10% PV of an ordinary annuity of I at 10% for 6 periods 4.36 PV of an ordinary annuity of I at 10% for7 periods 4.87 What amount should be recorded as sales revenue in January 2020?
On January 1, 2020, Hamid Company sold goods to Khaled Company. Khaled signed a noninterest-bearing note requiring payment of P600, 000 annually for seven years. The first payment was made on January 1, 2020. The prevailing rate of interest for this type of note at date of issuance was 10% PV of an ordinary annuity of I at 10% for 6 periods 4.36 PV of an ordinary annuity of I at 10% for7 periods 4.87 What amount should be recorded as sales revenue in January 2020?
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 11E
Related questions
Question
On January 1, 2020, Hamid Company sold goods to Khaled Company. Khaled signed a noninterest-bearing note requiring payment of P600, 000 annually for seven years. The first payment was made on January 1, 2020.
The prevailing rate of interest for this type of note at date of issuance was 10%
PV of an ordinary annuity of I at 10% for 6 periods 4.36
PV of an ordinary annuity of I at 10% for7 periods 4.87
What amount should be recorded as sales revenue in January 2020?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College