Question
On December 31, 2011, Fenton Company sold equipment to Denver Inc., accepting a $275,000 noninterest-bearing note receivable in full payment on December 31, 2014. Denver
On December 31, 2011, Fenton Company sold equipment to Denver Inc., accepting a $275,000 noninterest-bearing note receivable in full payment on December 31, 2014. Denver Inc., normally pays 12% for its borrowed funds. The equipment is carried in Fenton's perpetual inventory records at 65% of its cash selling price.
2. Prepare Fenton's journal entry on December 31, 2012, necessitated by this transaction. (Hint: Prepare an amortization schedule for the loan.)
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
