Question
McCormick Corporation issued a 4-year, $48,600, 4% note to Greenbush Company on January 1, 2014, and received a computer that normally sells for $38,045. The
McCormick Corporation issued a 4-year, $48,600, 4% note to Greenbush Company on January 1, 2014, and received a computer that normally sells for $38,045. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 11%. Prepare McCormicks journal entries for (a) the January 1 issuance and (b) the December 31 interest.
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The ASQ Auditing Handbook
Authors: J. P. Russell
3rd Edition
0873896661, 978-0873896665
