Question
Cheyenne Corporation issued a 4-year, $31,000, 4% note to Greenbush Company on January 1, 2020, and received a computer that normally sells for $24,268.
Cheyenne Corporation issued a 4-year, $31,000, 4% note to Greenbush Company on January 1, 2020, and received a computer that normally sells for $24,268. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 11%. Prepare Cheyenne's journal entries for (a) the January 1 issuance and (b) the December 31 interest.
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
