Transactions during Year 5 and other information relating to Braddock's long-term receivables were as follows:
The $750,000 note receivable is dated May 1, Year 4, bears interest at 9%, and represents the balance of the consideration Kern received from the sale of its idle building to Able Co. Principal payments of $250,000 plus interest are due annually beginning May 1, Year 5. Able made its first principal and interest payment on May 1, Year 5. Collection of the remaining note installments is reasonably assured.
Required:
(a) Prepare the long-term receivables section of Braddock’s balance sheet at December 31, Year 5.
(b) Prepare a schedule showing the current portion of the long-term receivables and accrued interest receivable that would appear in Braddock’s balance sheet at December 31, Year 5.
(c) Prepare a schedule showing interest revenue from the long-term receivables that would appear on Braddock’s income statement for the year ended December 31, Year 5.