Question
Bonus homework 4 : Note Receivable. 1 : Zero-Interest-Bearing Note On 1/1/20 20 , Arden Farm Company lends money and receives a four-year, $5 0,000
Bonus homework 4: Note Receivable.
1: Zero-Interest-Bearing Note
On 1/1/2020, Arden Farm Company lends money and receives a four-year, $50,000 zero-interest-bearing note. The market rate of interest for a note of similar risk is 11 percent.
(1). Prepare the journal entry to record the receipt of the note.
(2). Prepare the journal entry to record interest revenue at the end of 2020.
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Survey of Accounting
Authors: Thomas Edmonds, Christopher, Philip Olds, Frances McNair, Bor
4th edition
77862376, 978-0077862374
