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1.Stewart receives a $20,000 payment three years in advance of a scheduled appearance as a graduation speaker at a major state university. A four percent interest rate applies.
Required:1. Prepare the journal entry to record Stewart's initial receipt of the $20,000 payment.2. Prepare journal entries to record any interest revenue or expense recognized by Stewart for years one, two and three of the contract.3. Prepare a journal entry to record revenue when Stewart delivers his graduation speech.
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