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McCormick Corporation issued a 4-year, $71,000, 5% note to Greenbush Company on January 1, 2011, and received a computer that normally sells for $55,904. The
McCormick Corporation issued a 4-year, $71,000, 5% note to Greenbush Company on January 1, 2011, and received a computer that normally sells for $55,904. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 12%. Prepare McCormick's journal entries for (a) the January 1 issuance and (b) the December 31 interest
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh
4th Canadian edition
978-1259269868, 978-1259103292
