Question
On January 1, 2016, Matanuska Transport sold four school buses to the Knik School District. In exchange for the buses, Matanuska received a note requiring
On January 1, 2016, Matanuska Transport sold four school buses to the Knik School District. In exchange for the buses, Matanuska received a note requiring payment of $525,000 by Knik on December 31, 2018. The effective interest rate is 6%.
Question
Journal entries for Matanuska for 2016 would include:
| a debit to Discount on Notes Receivable of $26,448 | ||
| a debit to Interest Receivable of $26,448 | ||
| a debit to Interest Revenue of $26,448 | ||
| none of the above |
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, George Foster, Srikant M. Datar, Howard D. Teall, Foster Horngren, Data Horngren
3rd Canadian Edition
0130355801, 978-0130355805
