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In: Accounting

On January 1, 2019, FLOWERS Inc. rendered services in exchange for a four-year promissory note having...

On January 1, 2019, FLOWERS Inc. rendered services in exchange for a four-year promissory note having a face value of $10,000. Interest at a rate of 3% is payable annually on January 1 (first payment

Jan 1, 2020). The customer has credit ratings that require it to borrow money at 8% interest.

FLOWERS uses IFRS.

Required: Show and label all calculations. (Round to the nearest dollar.)

  1. What would be the value of the service revenue recorded on January 1, 2019?
  2. Prepare the full amortization table for note.
  3. What is the value of the interest revenue recorded by FLOWERS in 2019?
  4. What is the value of the interest revenue recorded by FLOWERS in 2020?

What is the value of note / interest receivable recorded by FLOWERS at its year end of December 31, 2020

Solutions

Expert Solution

The answer has been presenetd in the supporting sheet. For detailed answer refer to the supporting sheet.

ekkarill92 answered 2 years ago
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