On January 1, 2024, Hodge Beanery received $14,600 from the Kennedy Company in exchange for a coffee roaster that it will deliver to Kennedy on December 31, 2024. Assume that Hodge views the time value of money to be a significant component of this transaction and that a 8% interest rate is applicable. How much deferred revenue would Hodge recognize on January 1, 2024? Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole dollar. (FV of $1. PV of $1, FVA of $1, PVA of $1, EVAD of $1 and PVAD of $1) Deferred revenue

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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On January 1, 2024, Hodge Beanery received $14,600 from the Kennedy Company in exchange for a coffee roaster that it will deliver
to Kennedy on December 31, 2024. Assume that Hodge views the time value of money to be a significant component of this
transaction and that a 8% interest rate is applicable.
How much deferred revenue would Hodge recognize on January 1, 2024?
Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole dollar. (FV of $1. PV of $1. FVA of $1.
PVA of $1. FVAD of $1 and PVAD of $1)
Deferred revenue
Transcribed Image Text:On January 1, 2024, Hodge Beanery received $14,600 from the Kennedy Company in exchange for a coffee roaster that it will deliver to Kennedy on December 31, 2024. Assume that Hodge views the time value of money to be a significant component of this transaction and that a 8% interest rate is applicable. How much deferred revenue would Hodge recognize on January 1, 2024? Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole dollar. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Deferred revenue
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