Question
EG Company purchased equipment by issuing a 6%, 8-year promissory note having a maturity value of $250,000. Interest due each Dec. 31. The true market
EG Company purchased equipment by issuing a 6%, 8-year promissory note having a maturity value of $250,000. Interest due each Dec. 31. The true market rate is 11%.
Prepare journal entry:
a. Jan. 1 - Purchase
b. Dec 31 - Interest payment due - Year 1
c. Dec 31 - Interest payment due - Year 2
d. Dec 31 - Interest payment due - Year 3
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College Accounting Ch 1-12
Authors: Dansby
5th Edition
0763834955, 978-0763834951
