Prepare the necessary journal entries for the following dates for Rodney Inc.
On 1 January 2022, Rodney Inc. provided services to Smith Co. in exchange for Smith’s $300,000, 2-year 8% note with interest compounded semi-annually on July 1 and January 1. The current market rate of similar notes is 12%. Rodney Inc. financial year ends December 31.
Prepare the necessary
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Accounts receivable Discount Premium
Bank Interest receivable Sales discounts forfeited
Cash Inventory Sales returns
Cost of Goods Sold Notes receivable Sales revenue
COGS Par Service revenue
| Jan 1, 2022: | ||
| Dr. Answer | $Answer | |
| Cr. Answer | $Answer | |
| Dec 31, 2022: | ||
| Dr. Answer | $Answer | |
| Dr. Notes receivable | $Answer | |
| Cr. Answer | $Answer | |
| Jan 1, 2023: | ||
| Dr. Answer | $Answer | |
| Cr. Answer | $Answer |
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