3.1 Prepare the journal entry to record the transaction of December 31, 2019, for Halen company. 3.2 Assuming Halen’s fiscal year-end is December 31, prepare the journal entry for December 31, 2020.
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On December 31,2019, Halen company performed environmental consulting services for Stuart Corporation was short of cash, and Halen company agreed to accept 900,000 zero-interest-bearing note due December 31,2021 as payment in full. Stuart Corporation is somewhat of a credit risk and typically borrows funds at a rate of10%. (PVIFA n=2,i=10% =1.7355 and PVIF n=2,i=10% =0.8264)
Instruction :
3.1 Prepare the
3.2 Assuming Halen’s fiscal year-end is December 31, prepare the journal entry for December 31,
2020.
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