Give me correct answer with explanation. Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles. The snowmobiles were delivered on January 1, 2024, and Arcticreceived a note from Seneca indicating that Seneca will pay Arctic $32,500 on a future date. Unless informed otherwise, assume thatArctic views the time value of money component of this arrangement to be significant and that the relevant interest rate is 10%.Required:1. Assume the note indicates that Seneca is to pay Arctic the $32,500 due on the note on December 31, 2024. Prepare the journalentry for Arctic to record the sale on January 1, 2024.2. Assume the same facts as in requirement 1, and prepare the journal entry for Arctic to record collection of the payment onDecember 31, 2024.3. Assume instead that Seneca is to pay Arctic the $32,500 due on the note on December 31, 2025. Prepare the journal entry forArctic to record the sale on January 1, 2024.4. Assume instead that Arctic does not view the time value of money component of this arrangement to be significant and that thenote indicates that Seneca is to pay Arctic the $32,500 due on the note on December 31, 2024. Prepare the journal entry forArctic to record the sale on January 1, 2024.Note: Use tables, Excel, or a financial calculator. If no entry is required for a transaction/event, select "No journal entry required" inthe first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. (EVof $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1)No1DateJanuary 01, 2024 Notes receivableAnswer is not complete.General JournalDebitCredit32,500Discount on notes receivableSales revenue2December 31, 202 CashDiscount on notes receivableNotes receivable000000

Journal entry:Journal entry refers to the recording of the business day-to-say transactions in the…

Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles. The snowmobiles were delivered on January 1, 2024, and Arctic received a note from Seneca indicating that Seneca will pay Arctic $32,500 on a future date. Unless informed otherwise, assume that Arctic views the time value of money component of this arrangement to be significant and that the relevant interest rate is 10%.

Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles. The snowmobiles were delivered on January 1, 2024, and Arctic received a note from Seneca indicating that Seneca will pay Arctic $32,500 on a future date. Unless informed otherwise, assume that Arctic views the time value of money component of this arrangement to be significant and that the relevant interest rate is 10%.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 12P: Hamlet Corporation purchases computer equipment at a price of 100,000 on January 1, 2019, paying...

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Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles. The snowmobiles were delivered on January 1, 2024, and Arctic received a note from Seneca indicating that Seneca will pay Arctic $43,500 on a future date. Unless informed otherwise, assume that Arctic views the time value of money component of this arrangement to be significant and that the relevant interest rate is 9%. Required: Assume the note indicates that Seneca is to pay Arctic the $43,500 due on the note on December 31, 2024. Prepare the journal entry for Arctic to record the sale on January 1, 2024. Assume the same facts as in requirement 1, and prepare the journal entry for Arctic to record collection of the payment on December 31, 2024. Assume instead that Seneca is to pay Arctic the $43,500 due on the note on December 31, 2025. Prepare the journal entry for Arctic to record the sale on January 1, 2024. Assume instead that Arctic does not view the time value of money component of this arrangement to be…
Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles. The snowmobiles were delivered on January 1, 2021, and Arctic received a note from Seneca indicating that Seneca will pay Arctic $43,500 on a future date. Unless informed otherwise, assume that Arctic views the time value of money component of this arrangement to be significant and that the relevant interest rate is 9%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)Required: Assume the note indicates that Seneca is to pay Arctic the $43,500 due on the note on December 31, 2021. Prepare the journal entry for Arctic to record the sale on January 1, 2021. Assume the same facts as in requirement 1, and prepare the journal entry for Arctic to record collection of the payment on December 31, 2021. Assume instead that Seneca is to pay Arctic the $43,500 due on the note on December 31, 2022. Prepare the journal entry for Arctic to record the sale on…
On January 1, 2021, Hodge Beanery received $8,000 from the Kennedy Company in exchange for a coffee roaster that it will deliver to Kennedy on December 31, 2021. Assuming that Hodge views the time value of money to be a significant component of this transaction, and that a 9% interest rate is applicable. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)