Question
McCormick Corporation issued a 4-year, $46,700, 4% note to Greenbush Company on January 1, 2014, and received a computer that normally sells for $35,353. The
McCormick Corporation issued a 4-year, $46,700, 4% note to Greenbush Company on January 1, 2014, and received a computer that normally sells for $35,353. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 12%. Prepare McCormicks journal entries for (a) the January 1 issuance and (b) the December 31 interest.
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Auditing An International Approach
Authors: Wally J. Smieliauskas, Kathryn Bewley
7th edition
1259259870, 1259087468, 70968292, 978-1259087462
