John Wood is negotiating a bank loan for his company, Wood, Inc., of ($ 16,000) for 90

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John Wood is negotiating a bank loan for his company, Wood, Inc., of $\$ 16,000$ for 90 days. The bank's current interest rate is $10 \%$. Prepare Wood's entries to record the loan under each of the following assumptions:

a. Wood signs a note for $\$ 16,000$. Interest is deducted in calculating the proceeds turned over to him.

b. Wood signs a note for $\$ 16,000$ and receives that amount. Interest is to be paid at maturity.

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Financial Accounting A Business Perspective

ISBN: 9780072289985

7th Edition

Authors: Roger H. Hermanson, James Don Edwards

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Question Posted: Jun 16, 2024 04:18 AM

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John Wood is negotiating a bank loan for his company, Wood, Inc., of ($ 16,000) for 90

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Financial Accounting A Business Perspective

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