Question
Buffalo Corporation issued a 4-year, $81,000, zero-interest-bearing note to Brown Company on January 1, 2017, and received cash of $46,312. The implicit interest rate is
Buffalo Corporation issued a 4-year, $81,000, zero-interest-bearing note to Brown Company on January 1, 2017, and received cash of $46,312. The implicit interest rate is 15%. Prepare Buffalos journal entries for (a) the January 1 issuance and (b) the December 31 recognition of interest.
| No. | Date | Account Titles and Explanation | Debit | Credit |
| (a) | January 1, 2017 |
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| (b) | December 31, 2017 |
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Principles Of Financial Auditing
Authors: Athmane Mokhbi
1st Edition
B09LGTJJFG, 979-8763532265
