Question
Delta borrowed $2,800 in the form of a 6-month, zero-interest-bearing note on October 1, 2020 and is required to pay $2,880 on March 31, 2021.
Delta borrowed $2,800 in the form of a 6-month, zero-interest-bearing note on October 1, 2020 and is required to pay $2,880 on March 31, 2021.
A) What is the proper journal entry for Delta to record the issuance of the note on October 1, 2020:
B) How much interest expense does Delta recognize on its income statement for 2020?
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Ethical Obligations and Decision Making in Accounting Text and Cases
Authors: Steven Mintz, Roselyn Morris
4th edition
978-1259543470, 1259543471, 978-1259730191
