Valix Finacc vol 1 Problem 6-21

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 6-21

2008

Jan.   1   Cash                                                                              1,000,000

                Notes receivable                                                         6,000,000

                         Land                                                                                             5,000,000

                         Gain on sale of land                                                                    2,000,000

Dec. 31   Accrued interest receivable                                 720,000

                         Interest income (12% x 6,000,000)                                                    720,000

2009

Dec. 31   Accrued interest receivable                                 806,400

                         Interest income (12% x 6,720,000)                                                    806,400

         

2010

Jan.   1   Cash                                                                              7,526,400

                         Notes receivable                                                                          6,000,000

                         Accrued interest receivable                                                         1,526,400