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2. On January 1, 2024, Millipede Machinery sold a tractor to Thomas Hartwood, accepting a note promising payment of $120,000 in five years. The applicable effective interest rate is 7%. Prepare the necessary entries on January 1, 2024, and December 31, 2024 related to this note. General Journal 1/1 Note Receivable Discount on Note Receivable Sales Revenue Debit Credit 120,000 34,441 85,559 General Journal Debit Credit 12/31 Discount on Note Receivable 5,989 Interest Revenue 5,989

2. On January 1, 2024, Millipede Machinery sold a tractor to Thomas Hartwood, accepting a note promising payment of $120,000 in five years. The applicable effective interest rate is 7%. Prepare the necessary entries on January 1, 2024, and December 31, 2024 related to this note. General Journal 1/1 Note Receivable Discount on Note Receivable Sales Revenue Debit Credit 120,000 34,441 85,559 General Journal Debit Credit 12/31 Discount on Note Receivable 5,989 Interest Revenue 5,989

FINANCIAL ACCOUNTING
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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2. On January 1, 2024, Millipede Machinery sold a tractor to Thomas Hartwood, accepting a note promising payment of $120,000 in five years. The applicable effective interest rate is 7%. Prepare the necessary entries on January 1, 2024, and December 31, 2024 related to this note. General Journal 1/1 Note Receivable Discount on Note Receivable Sales Revenue Debit Credit 120,000 34,441 85,559 General Journal Debit Credit 12/31 Discount on Note Receivable 5,989 Interest Revenue 5,989
Transcribed Image Text:2. On January 1, 2024, Millipede Machinery sold a tractor to Thomas Hartwood, accepting a note promising payment of $120,000 in five years. The applicable effective interest rate is 7%. Prepare the necessary entries on January 1, 2024, and December 31, 2024 related to this note. General Journal 1/1 Note Receivable Discount on Note Receivable Sales Revenue Debit Credit 120,000 34,441 85,559 General Journal Debit Credit 12/31 Discount on Note Receivable 5,989 Interest Revenue 5,989
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