3 Problem 14-11 (Algo) Note with unrealistic interest rate [LO14-3] 4 points Skipped eBook Print At...

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3 Problem 14-11 (Algo) Note with unrealistic interest rate [LO14-3] 4 points Skipped eBook Print At January 1, 2021, Brant Cargo acquired equipment by issuing a four-year, $250,000 (payable at maturity), 6% note. The market rate of interest for notes of similar risk is 12%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. to 3. Prepare the necessary journal entries for Brant Cargo. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar) References View transaction list Journal entry worksheet < 1 2 3 Record the purchase of equipment. Note: Enter debits before credits. Date January 01, 2021 General Journal Debit Credit Record entry Clear entry View general journal > 3 Problem 14-11 (Algo) Note with unrealistic interest rate [LO14-3] 4 points Skipped eBook Print At January 1, 2021, Brant Cargo acquired equipment by issuing a four-year, $250,000 (payable at maturity), 6% note. The market rate of interest for notes of similar risk is 12%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. to 3. Prepare the necessary journal entries for Brant Cargo. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar) References View transaction list Journal entry worksheet < 1 2 3 Record the purchase of equipment. Note: Enter debits before credits. Date January 01, 2021 General Journal Debit Credit Record entry Clear entry View general journal >

Answer rating: 100% (QA)

Journal Entry for Brant Cargo Equipment Purchase This scenario involves an unrealistic interest ratebut we can still analyze it using standard accounting practicesHeres the journal entry for Brant Cargo to record the purchase of equipment Date January 1 2021 General Journal Account Debit Credit Equipment 250000 Notes Payable 250000 Discount on Notes Payable 37500 drivespreadsheetExport to Sheets Explanation Equipment We debit the equipment account for 250000 representing the cost of the acquired equipment Notes Payable We credit the notes payable account for 250000 reflecting the liability created by the note issued Discount on Notes Payable Since the market interest rate ... View the full answer