On January 2, 2023, Sunland Inc. sells goods to Bramble Company in exchange for a zero-interest-bearing note with a face value of$7,480, with payment due in 12 months. The fair value of the goods at the date of sale is $6,800 (cost $4,080). Assume that thecompany chooses to reflect the interest component.(a)Your answer is correct.Prepare the journal entries to record this transaction on January 2, 2023. (Credit account titles are automatically indented when theamount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Listall debit entries before credit entries.)DateAccount Titles and ExplanationJanuary 2, 2023Notes ReceivableSales Revenue(To record sales)January 2, 2023Cost of Goods Sold(b)(c)Inventory(To record cost of goods sold)eTextbook and MediaList of AccountsYour answer is correct.How much total revenue should be recognized in 2023?Revenue recognized in 2023 $eTextbook and MediaList of AccountsYour answer is incorrect.7480Debit68004080Credit6840Attempts: 1 of 3 usedAttempts: 1 of 3 usedUsing Excel or a financial calculator, determine the interest rate that will be earned by Sunland. (Round answer to 1 decimal place,e.g. 15.1%)Interest rate0.0083 %

Interest is a amount which is paid by a borrower to the person from the money has been taken by him…

On January 2, 2023, Sunland Inc. sells goods to Bramble Company in exchange for a zero-interest-bearing note with a face value of $7,480, with payment due in 12 months. The fair value of the goods at the date of sale is $6,800 (cost $4,080). Assume that the company chooses to reflect the interest component.

On January 2, 2023, Sunland Inc. sells goods to Bramble Company in exchange for a zero-interest-bearing note with a face value of $7,480, with payment due in 12 months. The fair value of the goods at the date of sale is $6,800 (cost $4,080). Assume that the company chooses to reflect the interest component.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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