Question
2 : Interest-Bearing Note On 1/1/20 20 , Arden Farm Company a four-year, $5 0,000 note bearing interest at 10 percent annually. The market rate
2: Interest-Bearing Note
On 1/1/2020, Arden Farm Company a four-year, $50,000 note bearing interest at 10 percent annually. The market rate of interest for a note of similar risk is 11 percent. Prepare the journal entry to record the receipt of the note?
(1). Record the receipt of the note on 1/1/2020?
(2). Prepare the journal entry to record interest revenue at the end of the 2020 and 2021.
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Accounting Information For Business Decisions
Authors: Billie Cunningham, Loren A. Nikolai, John Bazley
1st Edition
0030224292, 978-0030224294
