Prepare the journal entries for december

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Question - Splish Brothers Inc. provided several entertainment services to Flounder Corporation in the past. On January 1, 2020, when the receivable for the past services was due, Flounder was unable to pay the outstanding balance. Splish Brothers Inc. agreed to accept a $370,000 non-interest bearing note payable on December 31, 2021. Flounder typically could arrange this kind of financing at an interest rate of 15%.

1- Use a financial calculator, or 3. Excel functions to arrive at the amount to record the note receivable.

2- Prepare the journal entry to record this transaction for Splish Brothers Inc. on Jan 1, 2020.

???????3- Prepare the journal entries for December 31, 2020 and 2021 using the effective interest method, and assuming that Flounder pays the note on schedule.

Reference no: EM133015552

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