Krum Marina sells a 42 foot exploratory submersible on October 1, 2013 and receives a $790,822 non-interest bearing note due in five years. Krum's cost cost of borrowing money is 4%. Krum's fiscal year-end is September 30.
a. How much revenue should Krum record on October 1, 2013?
b. Show the balance sheet presentation for the note receivable at September 30, 2014 and September 30, 2015.
c. How much interest income, related to the notes receivable, should Krum report for the years ending September 30, 2014 and 2015?
Image text transcribed for accessibility Krum Marina sells a 42 foot exploratory submersible on October 1, 2013 and receives a $790,822 non-interest bearing note due in five years. Krum's cost cost of borrowing money is 4%. Krum's fiscal year-end is September 30. How much revenue should Krum record on October 1, 2013? Show the balance sheet presentation for the note receivable at September 30, 2014 and September 30, 2015. How much interest income, related to the notes receivable, should Krum report for the years ending September 30, 2014 and 2015?