Question
16. Orange Mfg. Co. issued a four-year non-interest-bearing note with a face value of $500,000. Orange received $329,365, resulting in an effective 11% interest rate.
16. Orange Mfg. Co. issued a four-year non-interest-bearing note with a face value of $500,000. Orange received $329,365, resulting in an effective 11% interest rate.
Required: Prepare journal entries to: a. Issue the note
b. Record interest at the end of the first year
c. Record interest at the end of the second year (Note: round all answers to the nearest dollar.)
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Strategic Accounting For Management
Authors: Bob Ryan
1st Edition
1861524625, 9781861524621
