On December 31, 2020, Monty Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Monty Co. agreed toaccept a $296,600 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrowsfunds at a rate of 12%. Monty is much more creditworthy and has various lines of credit at 6%.Prepare the journal entry to record the transaction of December 31, 2020, for the Monty Co. (Round present value factor calculations 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. Creditaccount titles are automatically indented when the amount is entered. Do not indent manually.)DebitDate Account Titles and ExplanationDec. 31, 2020eTextbook and MediaList of AccountsAssuming Monty Co's fiscal year-end is December 31, prepare the journal entry for December 31, 2021. (Round 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 isentered. Do not indent manually.)Date Account Titles and ExplanationDec. 31, 2021eTextbook and MediaList of AccountsDebitDateDec. 31, 2022CreditAssuming Monty Co's fiscal year-end is December 31, prepare the journal entry for December 31, 2022. (If no entry is required, select "No Entry" for theaccount 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 ExplanationDebitCreditCredit

A journal entry is a financial record kept by a company or individual to record a specific financial…

On December 31, 2020, Monty Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Monty C accept a $296,600 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typicall funds at a rate of 12%. Monty is much more creditworthy and has various lines of credit at 6%.

On December 31, 2020, Monty Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Monty C accept a $296,600 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typicall funds at a rate of 12%. Monty is much more creditworthy and has various lines of credit at 6%.

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 30E

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On December 31, 2020, Larkspur Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Larkspur Co. agreed to accept a $ 252,100 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Larkspur is much more creditworthy and has various lines of credit at 6%.Click here to view factor table.
On December 31, 2020, Whispering Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Whispering Co. agreed to accept a $318,100 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Whispering is much more creditworthy and has various lines of credit at 5%. (a) Prepare the journal entry to record the transaction of December 31, 2020, for the Whispering Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
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On December 31, 2020, Ed Abbey Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Abbey Co. agreed to accept a $200,000 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Abbey is much more creditworthy and has various lines of credit at 6%. Instructions a.    Prepare the journal entry to record the transaction of December 31, 2020, for the Ed Abbey Co. b.    Assuming Ed Abbey Co.’s fiscal year-end is December 31, prepare the journal entry for December 31, 2021. c.    Assuming Ed Abbey Co.’s fiscal year-end is December 31, prepare the journal entry for December 31, 2022. *Explained step by step please.
On December 31, 2020, Ed Abbey Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Abbey Co. agreed to accept a $200,000 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Abbey is much more creditworthy and has various lines of credit at 6%. Instructions a.    Prepare the journal entry to record the transaction of December 31, 2020, for the Ed Abbey Co. b.    Assuming Ed Abbey Co.’s fiscal year-end is December 31, prepare the journal entry for December 31, 2021. c.    Assuming Ed Abbey Co.’s fiscal year-end is December 31, prepare the journal entry for December 31, 2022.