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John Company purchases used equipment form Moore Inc. on January 1, 2018 issuing a zero-interest note for $4,000,000 that matures in 4 years. The market
John Company purchases used equipment form Moore Inc. on January 1, 2018 issuing a zero-interest note for $4,000,000 that matures in 4 years. The market value of the equipment is not readily available. John Companys normal borrowing rate is 8%:
a. Record the journal entries at January 1, 2018 (at purchase), the interest entry (if necessary) for each year until maturity of the note and the entry to record the maturity of the note.
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