On June 30, 2019, Liang sold its patent with a carrying value of $79,884 to Miller Enterprises for $5,000 cash and a note specifying ten annual payments of $10,000. The first payment was due June 30, 2020. Liang uses 8% as discount rate. Which of the following would not be included in the journal entry to record the sale of the patent on June 30, 2019? Select one: O a. CR Discount on Note Receivable $32,899 O b. CR Gain on Sale of Patent $7,783 O c. CR Patent $79,884 O d. DR Cash $5,000 O All of the above would be included in the journal entry

On June 30, 2019, Liang sold its patent with a carrying value of $79,884 to Miller Enterprises for $5,000 cash and a note specifying ten annual payments of $10,000. The first payment was due June 30, 2020. Liang uses 8% as discount rate. Which of the following would not be included in the journal entry to record the sale of the patent on June 30, 2019? Select one: O a. CR Discount on Note Receivable $32,899 O b. CR Gain on Sale of Patent $7,783 O c. CR Patent $79,884 O d. DR Cash $5,000 O All of the above would be included in the journal entry

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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On June 30, 2019, Liang sold its patent with a carrying value of $79,884 to Miller Enterprises for $5,000 cash and a note specifying ten annual payments of $10,000. The first payment was due June 30, 2020. Liang uses 8% as its discount rate. Which of the following would not be included in the journal entry to record the sale of the patent on June 30, 2019? Select one: O a. CR Discount on Note Receivable $32,899 b. CR Gain on Sale of Patent $7,783 c. CR Patent $79,884 * d. DR Cash $5,000 O e. All of the above would be included in the journal entry.
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