Question
In: Accounting
On January 1, 2021, Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wr...
On January 1, 2021, Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wright received a note requiring payment of $518,000 by Elmira on December 31, 2023. The effective interest rate is 9%
Required:
1. How much sales revenue would Wright recognize on January 1, 2021, for this transaction?
2. Prepare journal entries to record the sale of merchandise on January 1, 2021 (omit any entry that might be required for the cost of the goods sold), the December 31, 2021, interest accrual, the December 31, 2022, interest accrual, and receipt of payment of the note on December 31, 2023.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
On January 1, 2021, Wright Transport sold four school buses to the Elmira School District.
On January 1, 2021, Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wright received a note requiring payment of $526,000 by Elmira on December 31 2023. The effective interest rate is 7% (EV of $1. PV of 51. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1 )(Use appropriate factor(s) from the tables provided.): Required: 1. How much sales revenue would Wright recognize on January 1, 2021, for this transaction? 2....
On January 1, 2021, Wright Transport sold four school buses to the Elmira School District. In...
On January 1, 2021, Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wright received a note requiring payment of $520,000 by Elmira on December 31, 2023. The effective interest rate is 8%. (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:
1. How much sales revenue would Wright recognize on January 1, 2021, for...
On January 1, 2021, Wright Transport sold four school buses to the Elmira School District. In...
On January 1, 2021, Wright Transport sold four school buses to
the Elmira School District. In exchange for the buses, Wright
received a note requiring payment of $531,000 by Elmira on December
31, 2023. The effective interest rate is 7%.
Required:
1. How much sales revenue would Wright
recognize on January 1, 2021, for this transaction?
2. Prepare journal entries to record the sale of
merchandise on January 1, 2021 (omit any entry that might be
required for the cost...
On January 1, 2021, Wright Transport sold four school buses to the Elmira School District. In...
On January 1, 2021, Wright Transport sold four school buses to
the Elmira School District. In exchange for the buses, Wright
received a note requiring payment of $515,000 by Elmira on December
31, 2023. The effective interest rate is 8%. (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:
1. How much sales revenue would Wright
recognize on January 1, 2021, for...
On January 1, 2021, Wright Transport sold four school buses to the Elmira School District. In...
On January 1, 2021, Wright Transport sold four school buses to
the Elmira School District. In exchange for the buses, Wright
received a note requiring payment of $530,000 by Elmira on December
31, 2023. The effective interest rate is 8%. (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:
1. How much sales revenue would Wright
recognize on January 1, 2021, for...
On January 1, 2021, Wright Transport sold four school buses to the Elmira School District. In...
On January 1, 2021, Wright Transport sold four school buses to
the Elmira School District. In exchange for the buses, Wright
received a note requiring payment of $522,000 by Elmira on December
31, 2023. The effective interest rate is 5%. (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:
1. How much sales revenue would Wright
recognize on January 1, 2021, for...
On January 1, 2018, Wright Transport sold four school buses to the Elmira School District. In...
On January 1, 2018, Wright Transport sold four school buses to
the Elmira School District. In exchange for the buses, Wright
received a note requiring payment of $526,000 by Elmira on December
31, 2020. The effective interest rate is 7%. (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:
1. How much sales revenue would Wright
recognize on January 1, 2018, for...
On January 1, 2018, Wright Transport sold four school buses to the Elmira School District. In...
On January 1, 2018, Wright Transport sold four school buses to
the Elmira School District. In exchange for the buses, Wright
received a note requiring payment of $524,000 by Elmira on December
31, 2020. The effective 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:
1. How much sales revenue would Wright
recognize on January 1, 2018, for...
A private school is considering the purchase of six school buses to transport students to and...
A private school is considering the purchase of six school buses
to transport students to and from school events. The initial cost
of the buses is $600,000. The life of each bus is estimated to be 5
years, after which time the vehicles would have to be scrapped with
no salvage value. The school’s management team has derived the
following estimates for annual revenues and cost for the next 5
years.
Year 1
Year 2
Year 3
Year 4
Year...
A private school is considering the purchase of six school buses to transport students to and...
A private school is considering the purchase of six school buses
to transport students to and from school events. The initial cost
of the buses is $600,000. The life of each bus is estimated to be 5
years, after which time the vehicles would have to be scrapped with
no salvage value. The school’s management team has derived the
following estimates for annual revenues and cost for the next 5
years.
Year 1
Year 2
Year 3
Year 4
Year...
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