On August 1, 2016, TTek installed a $560,000 computer system for Skybox.com. TTek agreed to accept a $600,000 nine-month, noninterest-bearing note due on April 30, 2017. TTek prepares financial statements at the end of every calendar year.
a. Prepare TTek's journal entry to record the receipt of the note on August 1, 2016.
b. Prepare the related adjusting entry on December 31, 2018.
c. Prepare TTek's journal entry to record the receipt of the payment on April 30, 2017.

Question

Quizplus · Accepted Answer

The Answer of On August 1, 2016, TTek installed a $560,000 computer system for Skybox.com. TTek agreed to accept a $600,000 nine-month, noninterest-bearing note due on April 30, 2017. TTek prepares financial statements at the end of every calendar year.
a. Prepare TTek's journal entry to record the receipt of the note on August 1, 2016.
b. Prepare the related adjusting entry on December 31, 2018.
c. Prepare TTek's journal entry to record the receipt of the payment on April 30, 2017.

On August 1, 2016, TTek Installed a $560,000 Computer System