Exercise 7-14 (Part Level Submission) On December 31, 2015, Pharoah Co. performe

Question

Exercise 7-14 (Part Level Submission) On December 31, 2015, Pharoah Co. performed environmental consulting services for Hayduke Co Hayduke was short of cash, and Pharoah Co. agreed to accept a $318,100 zero-interest-bearing note due December 31, 2017, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%, Pharoah is much more creditworthy and has various lines of credit at 596. w(a) Prepare the journal entry to record the transaction of December 31, 2015, for the Pharoah Co. (Round present value factor calcutations to 5 decimal places, e.g. 1.25124 and final answers to o decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit redit Date Dec. 31, 2015 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS Attempts: 0 of 3 used SAVE FOR LATER

Explanation / Answer

Date Account titles and explanation Debit Credit Dec. 31, 2015 Notes Receivable $318,100 Discount on Notes Receivable $59,924 Service Revenue($318,100 * 0.81162) $258,176

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