Monty Corporation issued a 3-year, $63,000, 7% note to Sandhill Company on January 1, 2017, and received
Fantastic news! We've Found the answer you've been seeking!
Question:
Monty Corporation issued a 3-year, $63,000, 7% note to Sandhill Company on January 1, 2017, and received an excavator that normally sells for $53,031. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 10%.
Prepare Monty Corporation journal entries for (a) the January 1 issuance and (b) the December 31 interest.
Related Book For
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni
Posted Date: