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 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Introductory Accounting Finance And Auditing For Lawyers
Authors: Lawrence A. Cunningham
5th Edition
0314912606, 978-0314912602
