At the beginning of 2024, Gannon Company issued a three-year…
At the beginning of 2024, Gannon Company issued a three-year, zero-interest bearing $8,800 notes receivable in exchange for services provided to Antique Company. The market rate for equivalent notes was 4% at the date of issuance. On their 2024 financial statements, Gannon reported notes receivable of $8,800 and service revenue of $8,800. What effect did this accounting for the note and related revenue have on the following amounts?