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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
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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