(Answered) Question - on january 1 2017 desert co rendered consulting

Accounting

Question - On January 1, 2017, Desert, Co. rendered consulting services to Beach, Co. in exchange for a $100,000 non-interest-bearing note. The note matures on December 31, 2018. Principal and interest will be remitted at maturity. The customer's normal borrowing rate is 8%.

1- Determine the amount of Service Revenue Desert, Co. can recognize on January 1, 2017.

2- Using the information presented in Question 7 for Desert, Co., determine the amount of Interest Revenue recognized on December 31, 2017.

3-Using the information presented in Question 7 for Desert, Co., determine the Carrying Value of the Note on the Balance Sheet as of December 31, 2017.

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