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On January 1, 2020, Snow Co. receives a 5-year note in exchange for cash. The face value of the note is: 500,000 The stated interest
On January 1, 2020, Snow Co. receives a 5-year note in exchange for cash. The face value of the note is: 500,000 The stated interest rate of note is: 7.00% The market interest rate is: 9.00% The note pays interest annually, starting on December 31, 2020 Snow's fiscal year end is December 30. Snow uses the straight-line method. Prepare the necessary journal entries for Snow on the following dates: There are more yellow boxes given than necessary for the J/E. Leave blank the boxes that you do not need. If there is no J/E needed, leave the boxes blank. Jan 1, 2020 Dec 31, 2020 Dec 31, 2021 On July 1, 2020, Maxine Co. receives a note in exchange for some services. The present value of the note is: 223,026 Maxine will receive four equal payments from this note starting on June 30, 2021. The implied interest rate of note is: 3.00% Maxine's fiscal year end is June 30. Maxine uses the effective interest method. Prepare the necessary journal entries for Maxine on the following dates: There are more yellow boxes given than necessary for the J/E. Leave blank the boxes that you do not need. If there is no J/E needed, leave the boxes blank. July 1, 2020 June 30, 2021 June 30, 2022
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