Question
On July 1, 2021, Burnaby Ltd. borrowed $95,000 from Delta Co through a non-interest bearing note due in 5 years.Because the note was non-interest bearing,Burnaby
On July 1, 2021, Burnaby Ltd. borrowed $95,000 from Delta Co through a non-interest bearing note due in 5 years.Because the note was non-interest bearing,Burnaby agree to let Delta use an empty warehouse that Burnaby had at the back of the property. A 8% rate of interest is normally charged on this type of loan.
Instructions:Prepare the journal entry to record this transaction for Burnaby.
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Survey of Accounting
Authors: Edmonds, old, Mcnair, Tsay
2nd edition
9780077392659, 978-0-07-73417, 77392655, 0-07-734177-5, 73379557, 978-0073379555
