Notes Receivable Link Communications programs voicemail systems for businesses.

Question

Notes Receivable

Link Communications programs voicemail systems for businesses. For a recent project, they charged $135,000. The customer secured this amount by signing a note bearing 13% interest on February 1, 2019.

Required:

1. Prepare the journal entry to record the sale on February 1, 2019.

Sales Revenue ?

Determine how much interest Link will receive if the note is repaid on December 1, 2019. Round your answer to the nearest whole dollar.

repare Link's journal entry to record the cash received to pay off the note and interest on December 1, 2019. If an amount box does not require an entry, leave it blank.

Notes Receivable ? 2.

Sales Revenue ?

Determine how much interest Link will receive if the note is repaid on December 1, 2019. Round your answer to the nearest whole dollar.

repare Link's journal entry to record the cash received to pay off the note and interest on December 1, 2019. If an amount box does not require an entry, leave it blank.

Cash ? Interest Income ? Notes Receivable ? Record collection of note

Explanation / Answer

Answer

Date Particulars Dr Cr December 1, 2019 Cash $149625 Interest Income (135000*13%*10/12) $14625 13% Note Receivable $135000 (Being record the cash received to pay off the note and interest )

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