On 1 January 2022, Rodney Inc. provided services to Smith Co. in exchange for Smith’s $300,000, 2-year 8% note with interest compounded semi-annually on July 1 and January 1. The current market rate of similar notes is 12%. Rodney Inc. financial year ends December 31.ANSWER:Complete the following amortization schedule: CashInterestAmortizedCarryingDatesReceivedIncomeAmountAmountJan 1, 2022 0 0 0$Jul 1, 2022$$$$Jan 1, 2023 " "$$$Jul 1, 2023 " "$$$Jan 1, 2024 " "$$$ 2. Prepare the necessary journal entries for the following dates for Rodney Inc.Jan 1, 2022: Dr. Answer$ Cr. Answer $ Dec 31, 2022: Dr. Answer$ Dr. Notes receivable$ Cr. Answer $ Jan 1, 2023: Dr. Answer$ Cr. Answer $ $

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Description: On 1 January 2022, Rodney Inc. provided services to Smith Co. in exchange for Smith’s $300,000, 2-year 8% note with interest compounded semi-annually on July 1 and January 1. The current market rate of similar notes is 12%. Rodney Inc. financial ye

Present Value of Note Receivable = Present Value of Interest Payments + Present Value of Redemption…

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Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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On 1 January 2022, Rodney Inc. provided services to Smith Co. in exchange for Smith’s $300,000, 2-year 8% note with interest compounded semi-annually on July 1 and January 1. The current market rate of similar notes is 12%. Rodney Inc. financial year ends December 31.

ANSWER:

Complete the following amortization schedule:

	Cash	Interest	Amortized	Carrying
Dates	Received	Income	Amount	Amount
Jan 1, 2022	0	0	0	$
Jul 1, 2022	$	$	$	$
Jan 1, 2023	" "	$	$	$
Jul 1, 2023	" "	$	$	$
Jan 1, 2024	" "	$	$	$

2. Prepare the necessary journal entries for the following dates for Rodney Inc.

Jan 1, 2022:
Dr. Answer	$
Cr. Answer		$

Dec 31, 2022:
Dr. Answer	$
Dr. Notes receivable	$
Cr. Answer		$

Jan 1, 2023:
Dr. Answer	$
Cr. Answer		$

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ANSWER: Complete the following amortization schedule: Cash Interest Amortized Carrying Dates Received Income Amount Amount Jan 1, 2022 0 0 0 $ Jul 1, 2022 $ $ $ $ Jan 1, 2023 " " $ $ $ Jul 1, 2023 " " $ $ $ Jan 1, 2024 " " $ $ $