Create all necessary journal entries

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Reference no: EM13140929

RadioHead Development Co. sold a building to ColdPlay Co. as a restaurant site on Jan 1, 2009. RadioHead accepted in exchange a five-year note having a maturity value of $100,000 and no stated interest rate. The building originally cost RadioHead $80,000 and had correctly recorded accumulated depreciation of $10,000 as of the date of the sale. The building had a fair market value of $78,353 on the date of the sale.

1. Based on the above information prepare the journal entry to record the sale of the building on Jan 1, 2009.

2. Prepare any journal entries (if necessary) that would be required related to the Note Receivable at the end of 2009, 2010, 2011, and 2012.

3. Assume that $100,000 is received from ColdPlay Co. on 12/31/2013. Prepare all necessary journal entries for 2013.

Reference no: EM13140929

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